Bahraini Ministries Oppose Student Allowance Bill Due to High Cost
TDT | Manama
Email: mail@newsofbahrain.com
The Ministries of Education and Finance have voiced strong reservations against a proposed law from several MPs that would grant a yearly allowance to all Bahraini students.
The bill proposes providing each of the 137,969 students in public schools and 40,676 students in private schools with BD 80 at the beginning of the academic year and a monthly allowance of BD 30. Analysis indicates this initiative would cost approximately BD 78.6 million annually.
The Ministry of Education highlighted concerns that the bill would restrict the flexibility of using the Future Generations Reserve Fund's investment returns, potentially hindering investment in other crucial areas.
The ministry also questioned the sustainability of providing such allowances consistently, given the need to maintain positive returns from the fund's investments.
The Ministry of Finance and National Economy urged the parliament to reconsider the bill, citing several reasons.
The Ministry of Finance and National Economy urged the parliament to reconsider the bill, citing several reasons.
"The Future Generations Reserve Fund, funded by a portion of oil revenue, requires a flexible investment strategy adaptable to changing economic conditions. Diversification of investments and maintaining a cash reserve for economic crises are key to the fund's risk management strategy," the ministry stated in its response. The ministry emphasised that the proposed bill contradicts the fund's fundamental purpose; using its funds for recurring expenses would gradually deplete it.
The House of Representatives' Financial and Economic Affairs Committee also recommended rejecting the proposal, citing the significant financial burden and the gradual depletion of the Future Generations Reserve Fund as major concerns. It's worth noting that the proponents of the proposal are
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