Higher revenue from oil helped Kuwait post a 3.8 billion dinars ($14.22 billion) preliminary surplus in the first quarter of its 2008/09 fiscal year, government data showed.

The government income of the world's seventh-largest oil exporter in the three months to June 30 was 6.7 billion dinars, nearly 53 per cent of a state forecast of 12.68 billion dinars for the whole fiscal year.

Oil revenue in the first three months was 6.29 billion dinars, compared with a forecast of 11.65 billion dinars for the fiscal year which started on April 1, the data showed.

The budget was based on a conservative oil price estimate of $50 per barrel.

The budget forecast an annual deficit of 7.55 billion dinars. Expenditure stood at 2.14 billion dinars in the first quarter, according to the data.

The parliament approved in June the 2008/09 budget with record expenditure of 19 billion dinars, despite warnings by the central bank to contain spending to tackle record inflation.

Kuwait invests 10 percent of its revenues in a fund for future generations, which is managed by state-run Kuwait Investment Authority (KIA).

A surplus means KIA has more funds to spend on foreign investments.  The country posted a surplus of 9.32 billion dinars in 2007/08. - Reuters