Surplus oil profits to cover deficit before tackling public debt

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

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Surplus oil revenues will be used to reduce Bahrain’s BD681 million budget deficit for 2023 and 2024, with plans to lower public debt postponed, the Government announced. This shift comes as the focus remains on addressing the shortfall, with any strategies for reducing public debt set aside for now.

This decision stems from a review of a proposal put forth by MPs to the Speaker of the Council of Representatives, Ahmed Al Musallam, which called for a definitive approach to minimising public debt.

Precedence

However, the Government determined that tackling the deficit takes precedence, allocating BD520 million for 2023 and BD161 million for 2024. Officials acknowledged that any further surpluses generated from the current budget could later be applied to debt reduction.

Moreover, ongoing initiatives under the Fiscal Balance Programme are designed to gradually decrease public debt and ensure long-term financial stability.

Operational costs

These efforts involve enhancing the efficiency of operational costs and boosting government revenues, with an aim to reduce public debt relative to GDP.

While recognising the Council’s concerns, the government stressed that the aims of the proposal are being achieved through existing reforms. Ministers confirmed their willingness to collaborate with the Council of Representatives to advance the nation’s financial stability