Kuwait will have a budget deficit of $40bn for 2016-2017 if oil prices are $25 a barrel during the year, says Kuwait Petroleum Corporation (KPC) Chief Executive Nizar al-Adsani.

KPC is understood to account for roughly 92 per cent of Kuwait state’s national income and Al-Adsani said the state should seek to boost income and finding added value for oil, the Kuwait News Agency (Kuna) reported.

Kuwait’s current budget, which began on April 2015 and ending March 2016, is estimated to incur a KD2bn ($6.7bn) deficit based on a $45-a-barrel oil projection.

The KPC said it has launched several measures to control costs and spending, including disposal of losing assets.

The state-backed company also said the falling oil price is facilitating its expansion into the petrochemicals industry as well renewable energy.