Public debt ceiling law gets assent from MPs
Parliamentarians gave a green light to a law proposal that sets a ceiling of 60pc on the public debt in the country. The approval of the law proposal was apparently delayed since 2007.
Financial and Economic Affairs Parliamentary Committee members were keen on passing the new law, despite several warnings of Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa that it might have a negative effect on citizens’ livelihood.
The Minister urged MPs to heed the citizens’ interests before approving the legislation, stressing the need to seek viable solutions that enable Bahrain to boost revenues and reduce spending.
He noted that the country’s economic conditions changed since the draft law was first proposed. Shaikh Ahmed pointed out that public debt could only be tackled by boosting revenues and reducing spending, adding that the Government has already started scrapping subsidies which benefit expatriates, companies and well-to-do people.
The Minister urged MPs to work hand in hand with the executive so as to come out with measures that boost the state revenues and reduce spending, stressing the need to focus on priorities instead of compromising services that benefit citizens above all.
“It’s important to draw up a clear plan which aims to increase revenues and reduce spending, so as to strike a balance and repay debts,” he added.
Shaikh Ahmed highlighted that the public debt had increased to BD6.6 billion recently, stating that “the country is facing exceptional financial situations and challenges at this point of time, especially with the decreasing crude oil prices.”
Committee members disagreed to the Minister’s request, explaining that “the Ministry had eight years to come up with strategies to increase he incomes of the country’s economy.
They stressed that passing the law will not harm citizens. They also pointed that amendments could be done to the law once HM the King approves it.
Photo Caption:
Shaikh Ahmed bin Mohammed Al Khalifa
Related Posts