Sunday, October 30, 2011

Budget likely to be passed this week

V L Srinivasan
Manama (Bahrain), April 17:

The much-delayed budget for 2011 and 2012 is expected to be approved by Parliament on Tuesday.
With the Ministry of Finance remaining mum on a proposal to include a 25 per cent salary hike for Bahrainis in the budget, the Parliament’s Financial and Economic Affairs Committee has decided to submit the budgetary proposals to Chairman Khalifa Al Dhahrani today without waiting for the Government’s approval.
Earlier this year, the committee submitted the modified proposals to the ministry which warned that a hike in salaries would increase the budgetary deficit.
Speaking to DT, Independent MP and committee member Capt. Mahmood Al Mahmood said that the Parliament has already waited for six weeks for the ministry’s response.
“There was no reply from the Finance Ministry and eventually we decided to go ahead by incorporating our suggestions. We cannot wait as the house will be adjourned soon,” he said.
He added that the committee has suggested increasing the housing sector budget from BD120 million to BD180m per year as the Government has taken up a massive housing programme for the next five years.
“We have also requested the Finance Ministry to enhance the budget for the renovation and construction of old and dilapidated houses from BD10m to BD15m per year for 2011 and 2012,” he said.
“We need more houses and hence we made those modifications. Besides these proposals, the committee did not make any other changes to the allotment of funds to other departments, including vital sectors such as health and education,” he added.
The Finance Ministry has estimated that the deficit will reach BD372.7m in 2011 and BD440.4m in 2012, without the added burden of the proposed salary hike.
The country’s total revenue for two years is expected to reach BD4.4 billion, including BD3.9bn from oil revenue. The recurring expenditure is estimated to be around BD4.148bn.
BD240m has been allocated to the housing sector, BD534m for healthcare, BD660m for education and BD341m for infrastructure development over two years.
The Committee’s Vice Chairman Othman Mohamed Shareef Al Rayes has defended the panel’s decision to include the salary hike proposal in the budget saying that the purpose of the hike is to improve citizens’ standard of living.

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