Shura council to discuss budget today

TDT | Manama

The Daily Tribune – www.newsofbhahrain.com

Shura Council will today discuss a report of the Financial and Economic Affairs Committee on the draft law approving the state budget, which passed a parliamentary test last week.

The committee said the report, based on several independent and joint meeting, aims at enabling the executive authority to finance the development projects and overcome the economic and political challenges.

The report recommends strict adherence to fiscal programmes and controls to reduce and rationalise operating expenses to overcome the repercussions of the COVID-19 outbreak.

High fiscal deficit, public debt and dependence on oil revenues, the committee views, are the main challenges the budget faces.

“Fluctuations in global oil prices will enhance this further, which could be overcome by improving non-oil revenues, credit rating, economic growth and job opportunities,” the report points out.

The committee also explains: “The draft law approving the state budget focuses on three principles - rationalising and optimising expenditures, reducing operating expenses, maintaining support for needy citizens and enhancing the quality of government services.” The budget expects total revenues to reach BHD 2,406 million in 2021 and BHD 2,457m in 2022.

Expectations for expenditures are BD 3,614m in 2021 and BD 3,569m in 2022, producing an overall deficit of BD 1,208m in 2021, and BD 1,112m in 2022.

The shura committee report also affirms the need for a medium-term strategy to control and reduce the debt by using budgetary savings.

The report also calls for intensifying executive-legislative cooperation to attain the financial objectives within the given period. “This would ensure bringing down the public debt to a safer level and enhancing financial sustainability of the state,” the report said.

The committee also highlights the need to continue economic diversification efforts to create new economic sectors and enhance productivity and competitiveness.

The report also calls for formulating appropriate plans and policies to ensure that financial aid reaches the most deserving segments.

Up for discussion also is a report of the Public Utilities and Environment Committee on the maritime law and other suggestions.