Bahrain on track to achieving fiscal balance goals say MPs

PHOTO

Bahrain is on track to achieving its goals under the Fiscal Balancing Programme, according to MPs.

A review of the 2023 government closing financial statement by Parliament’s financial and economic affairs committee has shown a positive sign for Bahrain’s economy.

The government had made a commitment to achieve fiscal balance by the end of the year.

The statement, a copy of which has been obtained by the GDN, showed expected revenues at around BD3.1 billion but it was actually closer to BD3.2bn.

Expected spending was around BD3.7bn, but it reached nearly BD4bn. The deficit of BD773.9 million was covered through borrowing.

Strategic Thinking Bloc president and committee member Ahmed Al Salloom said the statement showed a significant change from over a decade ago.

“The gap between revenues and spending was huge, which led to extensive borrowing that grew over the years,” he said.

“Things are improving, the Cabinet has a plan, and we need to hear more as it is just three months from when the fiscal balancing should be achieved.

“It is clear that the programme is on track, and hopefully we will be talking about surplus this year, again with public debt remaining an issue that needs to be addressed.”

In April, Parliament rejected the government’s closing financial statement for 2022, with MPs claiming that significant details continued to be missing.

They also expressed doubts about the spending and revenue policies and stressed the need for more clarity and transparency.

Twenty MPs voted against the statement, eight were in its favour and two abstained from 30 present.

MPs have been rejecting the closing budget statements over the last few years in protest over the way the government managed finances and declared actual spending.

Parliament only approved the statements from 2003 to 2006 and in 2009 through a tight vote.

However, for the first time since 2009, MPs approved the annual closing budget statement for 2020 as they said spending was clearly directed to offset the effects of the Covid-19 pandemic.

Committee member Mohammed Al Marafi said government measures to fix the economic situation in Bahrain have been commendable.

“Bahrain could have achieved fiscal balance in 2022, but for Covid-19,” he said.

“However, we need progress reports on whether the fiscal balancing programme goals are to be reached by the end of this year. Despite indicators not showing a big gap, we need to know through a proper statistical analysis.”

Finance and National Economy Ministry assistant under-secretary for financial operations Mubarak Mattar had earlier said that closing financial statements were being presented according to the highest international standards of accounting, auditing and detail.

“The statement is an accurate financial sheet on all government revenues, spending, borrowing, deficits and debts over the year,” he said.

“Everything is subject to improvement and we have done that with the introduction of new higher accounting, auditing and detail practices.

“Procedural improvements take time to reflect, but we have made a number of changes and the rest is on the way.”