Sunday, October 30, 2011

Budget passed

V L Srinivasan
Manama (Bahrain), May 4:

Ending weeks of suspense, the Council of Representatives has finally approved the National Budget with a record deficit of about BD1.5billion.
The budget for 2011 and 2012 was voted upon and approved after a heated debate and has now been referred to the Shura Council which will take it up for discussion in its next weekly session.
The budget was approved by the Parliament despite the Government rejecting its proposal to increase Bahrainis’ salaries by 25 per cent.
The Government did however agree to a second proposal by MPs to increase the amount of funds allocated to the housing sector.
In a heated debate over the salary hike proposal, MPs from the Al Asala and Al Menbar groups refused to support the budget, however lawmakers from the Independent bloc agreed to approve the bill.
Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa described the budget as positive and aimed at accelerating socio-economic development.
“The welfare of citizens was kept in mind while making allocations to various sectors like housing, education and health care,” he said.
The housing sector will receive BD360million over two years. These funds are expected to be used to build new housing units in various governorates. The Government has also allotted BD10m per year for the restoration of dilapidated houses.
Apart from this, the education sector has been allocated BD660m which will be used for the construction of schools and the implementation of key initiatives, such as the King Hamad Digital Library programme.
The health sector has received BD534 million with a focus on the completion of ongoing projects, including the opening of the King Hamad General Hospital, establishing a National Center to Combat Cancer and opening a Maternity Hospital in the Central Governorate.
The road sector has been allocated BD68m this year and BD112.2m next year for various projects, including the development of King Faisal Highway and the development of the road network in villages.
The sanitation sector has also been accorded priority with the allocation of BD45.5m in 2011 and BD52.5m in 2012 for the completion of the sewage network in Bahrain and for the maintenance and development of the Tubli Bay water treatment plant.
The budget estimates a total revenue of around BD4.4bn and an expenditure of BD6.2bn.
The Finance Minister said that the projects will gain pace in the coming days as the GCC has also pledged support of $10bn to the Kingdom over a period of ten years.
Speaking to DT, Second Vice Speaker of the Lower House Adel A Rahman Al Moawda said he regrets that the budget was passed without any salary increase for the employees. “It was unfortunate and why should we pass it?” he asked.
Mr. Moawda said that the Government decided to support Alba by providing it with BD600m and this could have covered the salary hike for the next two years. “This would have nourished the economy as people would spend the money. It would have benefited all sections of society,” he said.
He added that people need the salary increase and were even disappointed with the proposed 25 per cent hike, as they need an increase of between 50 or 100 per cent.

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