In the wake of the November Opec meeting, Abu Dhabi Commercial Bank has forecast a fiscal surplus for Kuwait in both 2015 and 2016.

In the unlikely event that Kuwait does end up running a deficit, it has $548bn in savings to dip into in the form of the General Reserve Fund and the Reserve for Future Generations.

Kuwait started its sovereign wealth fund as an account with the Bank of England in 1953 and currently transfers 25 per cent of all oil revenue into the future generations fund on an annual basis.

Although its finances are robust, several senior officials have spoken out ahead of its 2015 budget announcement, warning that subsidy cuts need to be implemented. It remains to be seen whether these reforms will materialise.

“The key difference between Kuwait and the rest of the GCC [when it comes to announcements on spending cuts] is that Kuwait has the most advanced democratic system,” says a senior economic analyst who covers the Gulf region.

“They have an elected parliament that questions the government frequently, especially on the reserves issue. This has led to more a visible discussion of subsidy reforms.”

Whether the statements about cuts will be reflected in the spending plan remains to be seen, as does whether Kuwait will successfully execute its budget.

Last year, as in other years, the government failed to spend the KD21.2bn ($72.6bn) it had budgeted due to political wranglings delaying investments and project approvals.