Budget deficit falls 33.8pc

The Ministry of Finance and National Economy yesterday announced a major reduction in the budget deficit as of mid-year 2019, putting the Kingdom well ahead of its projected deficit reduction schedule. Bahrain’s annual account close for the 2018 fiscal year places the budget deficit at BD894.9 million, 33.8 per cent lower than the Kingdom’s previously forecast deficit of BD1,352.6m.

The actual deficit recorded during the first half of this year amounted to BD404m, BD245.9m lower than the BD650m half-year deficit recorded during 2018. The announcement follows the completion of the Kingdom’s  consolidated annual accounts closing report  and the  performance report of the implementation of the state budget for the fiscal year 2018.

Actual revenue recorded in the 2018 fiscal year was BD2,775.4m, an increase of 17pc over the approved budget, while total actual expenditure amounted to BD 3,670.3m, a decrease of 1.4pc compared with the approved budget of BD3,724.2m. Total actual revenue for the period ending 30 June 2019 rose by 18.8pc to BD1,274.4m, an increase of BD202.1m from BD1,072.3m the year before.

Total actual expenditure for the period was BD1,678.4m compared with BD1,722.4m the year before, a reduction of BD43.9m or 2.5pc. In a statement issued to media, the Minister of Finance and National Economy, Shaikh Salman bin Khalifa Al Khalifa stated: “The results demonstrate Bahrain’s commitment to balancing fiscal responsibility with economic growth and are a direct consequence of initiatives launched under the Fiscal Balance Programme, which is ensuring the Kingdom continues to see diversified and sustainable economic development.”