V L Srinivasan
Manama (Bahrain), April 14:
A proposed 25 per cent salary hike for Bahraini public and private sector workers appears to be the main glitch delaying the approval of the State Budget for 2011 and 2012.
The Parliament is months behind in passing the budget proposals which were referred to it by the Finance Ministry early this year.
In efforts to solve the impasse, the Financial and Economic Affairs Committee is now planning to hold a meeting with senior officials to discuss ways of implementing the salary hike without affecting the Kingdom's economy.
Speaking to DT, Committee Vice Chairman Othman Mohamed Shareef Al Rayes said that the Government has not yet agreed to include the salary hike in the budget fearing that it will increase the budgetary deficit.
“We are planning to hold a meeting with Government representatives soon to discuss how we can implement the proposal without harming the financial interests of the country,” he said.
However, officials have already made it clear in the past that such proposals may affect Bahrain’s credit rating.
Any further delays to approving the budget will have negative consequences on the Kingdom’s development and several MPs have already warned that unless the Government acts fast, many crucial projects in various sectors will be delayed.
“Our panel is working hard to come up with a report and amendments to the budget that meet the expectations of the public and the capabilities of the Government,” Mr. Al Rayes explained.
The Finance Ministry has warned that the deficit for 2011 is already expected to reach BD372.7 million, rising to BD440.4m in 2012, without taking into account the added burden of salary hikes.
Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa has revealed that Bahrain’s total revenue for the next two years is expected to reach BD4.4 billion, including BD3.9bn in oil revenue and BD580m in non-oil revenues and grants. The recurring expenditure is estimated to stand around BD4.148bn.
The minister has stressed that priority has been accorded to vital sectors which have a direct impact on citizens’ daily lives, such as housing, healthcare, education and infrastructure. These sectors have been allocated BD240m, BD534m, BD660m and BD341m respectively.
“The purpose of the salary hike was to improve the living conditions of people. The Government’s excuse for rejecting the proposal is not justified, especially with the allocation of a huge sum of money for recurrent expenditure for the two years,” Mr. Al Rayes said.
The Lower House was supposed to vote on the proposals on Tuesday however the session had to be postponed to today due to a lack of quorum.
Manama (Bahrain), April 14:
A proposed 25 per cent salary hike for Bahraini public and private sector workers appears to be the main glitch delaying the approval of the State Budget for 2011 and 2012.
The Parliament is months behind in passing the budget proposals which were referred to it by the Finance Ministry early this year.
In efforts to solve the impasse, the Financial and Economic Affairs Committee is now planning to hold a meeting with senior officials to discuss ways of implementing the salary hike without affecting the Kingdom's economy.
Speaking to DT, Committee Vice Chairman Othman Mohamed Shareef Al Rayes said that the Government has not yet agreed to include the salary hike in the budget fearing that it will increase the budgetary deficit.
“We are planning to hold a meeting with Government representatives soon to discuss how we can implement the proposal without harming the financial interests of the country,” he said.
However, officials have already made it clear in the past that such proposals may affect Bahrain’s credit rating.
Any further delays to approving the budget will have negative consequences on the Kingdom’s development and several MPs have already warned that unless the Government acts fast, many crucial projects in various sectors will be delayed.
“Our panel is working hard to come up with a report and amendments to the budget that meet the expectations of the public and the capabilities of the Government,” Mr. Al Rayes explained.
The Finance Ministry has warned that the deficit for 2011 is already expected to reach BD372.7 million, rising to BD440.4m in 2012, without taking into account the added burden of salary hikes.
Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa has revealed that Bahrain’s total revenue for the next two years is expected to reach BD4.4 billion, including BD3.9bn in oil revenue and BD580m in non-oil revenues and grants. The recurring expenditure is estimated to stand around BD4.148bn.
The minister has stressed that priority has been accorded to vital sectors which have a direct impact on citizens’ daily lives, such as housing, healthcare, education and infrastructure. These sectors have been allocated BD240m, BD534m, BD660m and BD341m respectively.
“The purpose of the salary hike was to improve the living conditions of people. The Government’s excuse for rejecting the proposal is not justified, especially with the allocation of a huge sum of money for recurrent expenditure for the two years,” Mr. Al Rayes said.
The Lower House was supposed to vote on the proposals on Tuesday however the session had to be postponed to today due to a lack of quorum.
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