KUWAIT CITY: Kuwait posted on Wednesday a budget surplus of $45 billion for the latest fiscal year, its second largest on record, but the IMF warned it of underlying risks despite the bumper returns.

The finance ministry said in a statement on its website that the surplus came in at 12.9bn dinars ($45bn) in the 12 months to March, capping a run of 15 straight years of windfalls.

Revenues came in at 31.8bn dinars, of which oil accounted for 29.3bn dinars, and spending at 18.9bn dinars.

It was the second biggest budget surplus on record, after the 13.2bn dinars achieved in 2011-2012.

The oil-rich emirate of Kuwait has now posted a budget surplus in each of the past 15 fiscal years worth a total of 92.5bn dinars, based on official figures compiled by AFP.

Sustained surpluses have boosted the assets of the Gulf state’s sovereign wealth fund to more than $500bn, according to unofficial estimates.

A majority of the dividends are attributed to high oil revenues which make up about 94 per cent of Kuwait’s overall income.

The International Monetary Fund warned, however, that a drop in oil prices could plunge Kuwait into deficit in the medium term if it fails to adopt measures to halt the rise of current spending.

Published in Dawn, October 2nd , 2014