Kuwait expects to allocate KD2.5bn ($8.3bn) of its 2018-19 budget on the development of infrastructure, road networks, building the new airport as well as power generation, according to Finance Minister Nayef al-Hajraf.

The budget allocation for infrastructure is nearly aligned to the value of transport projects that are expected to be awarded this year, estimated at $8.1bn, based on  MEED Projects data.

Al-Hajraf said the government expects to generate an estimated revenue of KD15bn, which assumes a $50 a-barrel oil price, with expenditures forecast to reach KD20bn, according to a report by the Kuwait News Agency (Kuna).

This equates to a deficit of KD6.5bn ($21.6bn) following a 10 per cent deduction from the overall revenue, which is the annual allocation for the Future Generations Fund (FGF), one of two major funds managed by the Kuwait Investment Authority (KIA).

The expected deficit for the year is 18 per cent lower compared to the $25.9bn deficit the Kuwaiti government announced in in 2017.

Al-Hajraf said the government would be addressing the budget deficit by "issuing local and international bonds, calculated withdrawal from general reserve and the increase of non-oil revenue."

Oil will account for 89 per cent of the budget’s revenue, with its contribution expected to reach KD13.3bn, an increase of 13.7 per cent over the previous year’s budget.

The proposed budget still needs to be approved by the Kuwait’s National Assembly.