an aerial view shows little traffic on the roads of kuwait city after the country entered virtual lockdown following the outbreak of coronavirus in kuwait city kuwait march 16 2020 reutersstephanie mcgeheefile photo cairo aug 7 reuters  kuwaits budget deficit increased 1748 in the 202021 year to 108 billion dinars 355 billion the finance ministry said on saturday noting it was the highest deficit in the countrys fiscal history revenue dropped to 105 billion dinars in the financial year that ended on march 31 down 389 while expenditure increased 07 to 213 billion dinars the ministry said in a statement kuwaits parliament in june approved the 202122 state budget proposed by the government in january which projected 2305 billion dinars in expenditure and a deficit of 121 billion dinars the parliamentary vote came amid a standoff between government and parliament that has delayed reforms in the opec member state oil revenue slumped 428 in 202021 to 88 billion dinars while other revenue fell 65 to 17 billion the ministry said wages and subsides accounted for 73 of total expenditure while capital and infrastructure expenditure accounted for 9 the average kuwaiti crude selling price for the fiscal year reached 4236 per barrel with average oil production of 25 million barrels per day the ministry said the deficit is attributed to the sharp decline in oil prices and minimal government operations as a result of the covid19 pandemic finance minister khalifa hamada said in the statement the cabinet is prepared to discuss the closing accounts with the parliament and to move forward in implementing real effective and sustainable solutions to the challenges facing public finances the state’s closing accounts must be ratified by parliament in order to be considered final earlier this year hamada said an increase in oil revenue due to higher oil prices does not cover the gulf states budget obligations and kuwait would need oil prices of 90 per barrel to balance the budget brent crude oil futures settled at 7070 on friday while us west texas intermediate wti crude fell to 6828 a barrel