Shura Council approves 2022 fiscal review with an eye on future budget discipline

The Shura Council approved Bahrain’s 2022 Consolidated Final Account during its meeting yesterday, stressing the need for closer examination of spending. While members supported the review, they raised concerns about recurring budget overruns and delays in the reporting process, calling for better oversight in future. Financial and Economic Affairs Committee Chair Khalid Al Maskati pointed out procedural delays, stating, “By law, the Consolidated Final Account should be submitted to Parliament within five months.” Review He noted that this deadline was missed, adding, “Parliament then took an additional seven months to complete its review.

”Al Maskati explained that his committee received the final account in the penultimate session of the second convening period of the sixth term and worked hard to conclude the discussions. He emphasised that “the account’s approval should be by decision, not legislation,” and stressed the importance of “taking the legislative authority’s role and its observations seriously.” First Deputy Chairman Jamal Fakhro added that certain ministries had exceeded their spending limits, saying, “We cannot call this a final account. It only covers revenue and repeats observations we’ve seen before, while certain ministries went over their spending limits.

Had they not, we might have achieved a surplus.” Fakhro stressed the need to stay within spending rules, suggesting that the review process should ideally be completed within the fiscal year. Yusuf Abdulla Alhumood, the Undersecretary for Financial Affairs at the Ministry of Finance and National Economy, responded to these points, assuring that the Consolidated Final Account is thorough and includes all necessary details on revenues, expenses, and related appendices. Financial report While the account is not responsible for every detail in supplementary documents, he affirmed it provides a full picture of the financial report, stating, “The final account reflects complete oversight of all areas covered in financial appendices.” On the topic of budget overruns, Alhumood noted that the Ministry has introduced measures to limit such incidents, requiring prior approvals for any purchase orders or financial actions.

He explained that regular notices are sent to relevant agencies to ensure they follow budget guidelines, reinforcing the Ministry’s focus on compliance. Addressing concerns over borrowing, Alhumood confirmed that the government had not exceeded its debt ceiling. Public debt In 2022, public debt stood at BD16.729 billion, with the borrowing cap at BD15 billion. Approximately BD14 billion fell under standard borrowing limits, with an additional BD2.6 billion in loans governed by special legislation.

“All borrowing, whether through the financial balance programme or specific loans, is part of public debt and subject to a separate law covering these financing needs,” he clarified. Alhumood also emphasised that all government revenue is properly recorded according to the law, while items outside government revenue, such as deposits, insurance, guarantees, and court-related funds, are not classified as government income Positive outlook The Justice Minister, His Excellency Nawaf bin Mohammed Al Maawda, shared a more positive outlook, reporting that Bahrain’s GDP grew by 4.9 per cent at constant prices in 2022, with the non-oil sector rising by 6.2 per cent — surpassing the 5 per cent target set in the economic recovery plan. “This is the highest rate for GDP at constant prices since 2013,” Al Maawda remarked, pointing to the government’s progress in strengthening economic growth. With the Shura Council’s approval, the committee’s observations will now be forwarded to the government, encouraging further steps to address ongoing budgetary concerns