Sunday, October 30, 2011

Budget woes

V L Srinivasan
Manama (Bahrain), April 19:

In an attempt to resolve a deadlock with the Government over a proposal to increase Bahrainis’ salaries by 25 per cent, a handful of MPs have proposed that this be replaced by a fixed increment of BD75 for employees and pensioners in the public and private sectors.
Speaking to DT, independent MP Hasan Salem Al Doseri said that some MPs have suggested finding a compromise that will help address the financial needs of the public while avoiding any greater burdens on the national economy and increase to the national deficit.
The MP stated that this compromise has been forwarded to the Ministry of Finance. “We are awaiting their response,” he said.
“The 25 per cent hike in salaries, as suggested by the Financial and Economic Affairs Committee, involves huge financial commitment of BD500 million for the next two years. Our proposal will soften this huge impact to some extent,” he said.
“We are counting on the positive response of the Government although we are aware of the bitter experience the Kingdom has gone through over the past two months. The MPs will not pass the Budget for 2011 and 2012 without the increment,” he said.
“Initially, we received a green signal from the Government with regard to our proposal and we don’t know why it has changed its opinion. I am confident that we can reach an understanding on the issue,” the MP added.
Besides the two proposals, 18 MPs from Al Wefaq bloc previously put forward a proposal demanding that Bahrainis with limited income be given a wage hike of 40 per cent.
However, this proposal is no longer under consideration as the 18 MPs resigned from the Council of Representatives in February in protest over the recent unrest.
The Al Wefaq MPs defended their proposal saying that it would enable poor families to cope with increasingly high costs of living. Before resigning, they also demanded an increase in the monthly inflation allowance from BD50 to BD100.
 

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