KUWAIT SETS HIGHER 1987/88 BUDGET DEFICIT
Kuwait, aided by the recovery in world
oil prices, announced a mildly expansionary budget for 1987/88
with a 3.3 pct rise in the deficit to 1.38 billion dinars.
    Oil revenues, slashed by some 40 pct in the original budget
for the 1986/87 year ending tomorrow, were forecast to rise 4.2
pct to 1.73 billion dinars in 1987/88, Finance Minister Jassim
al-Khorafi said.
    This would account for 87.2 pct of total estimated income
in the year starting on July 1 compared with 86.6 pct in
original 1986/87 estimates, the Kuwait News Agency Kuna quoted
him as saying.
    Spending by ministries and public institutions is forecast
to be 3.4 pct higher at 3.16 billion dinars in 1987/88 after an
11 pct cut in the current fiscal year's budget.
    In addition the government, as is usual, will transfer a
sum equal to 10 pct of total expected revenue to a special
savings reserve for future generations.
    The minister made no mention of how the deficit would be
covered. He also gave no actual outturn for spending and income
in 1986/87.
 REUTER
