Proposal to cut budget deficit

Manama : MP Mohammed Al Emmadi has submitted a proposal to include the income generated from refined petroleum products in the state budget. The MP said his proposal would help increase the revenues of the state and reduce the deficit and public debt.

“The increase in the contribution of the oil sector in the state budget, considering the weakness of non-oil revenues, in addition to the large role played by the State in the field of investment, will have positive effects on the state economy and the rate of economic growth, which will improve the economic aspects of the Kingdom in general and improve the services it provides for citizens. The proposal would also compensate for the decreasing oil prices in the global market, which began to decline since 2014 and had a significant impact on the general budget of the state in the past few years,” Al Emmadi said in a letter to the Speaker’s Office.

Justifying his proposal, Al Emmadi further said, “The state budget is based on oil revenues. Therefore, the state should utilise all the available resources of crude oil and pour its revenues into the general budget of the state, in order to achieve public interest and to provide prosperity to citizens in accordance with Article 10 and 11 of the Constitution, with regards to utilising natural resources of the state in the best ways.”

“Based on the fact that the revenues of refined petroleum products are not included in the general budget of the state, but are directly involved in the budget of the Holding Company for Oil and Gas, we have submitted this proposal with the aim of taking the necessary policies, strategies and procedures to include the revenues of refined petroleum products in the general budget of the state of the next fiscal year,” added the Al Emmadi, who is also a member of the Financial and Economic Committee in the House of Representatives.