increments Proposed

V L Srinivasan
Manama (Bahrain), April 5:


All Bahrainis working in the government and private sectors will get an increment of BD75 if the Government agrees to a proposal submitted by the Parliamentary Committee on Financial and Economic Affairs.
The Committee made the recommendation as part of its Budget proposals for 2011 and 2012 and is awaiting the Government’s response. Once the proposals are approved, they will be presented to the Council of Representatives and the Shura Council for debate and approval.
The Parliament is set to meet today, however the session is likely to focus on the election of a First Deputy Speaker following the resignation of the Al Wefaq MP filling that post.
It is therefore unlikely that the lawmakers will discuss the Budget proposals, even if the Government approves them by the time the session commences.
Speaking to DT, Independent MP and Committee member Latifa Mohamed Al Gaud said that the increments would cost the Government between BD150 million and BD200 million every year.
“This is part of Government’s social responsibility and is being done to further raise people’s standards of living. It will help them to cope with rising inflation,” she said.
Commenting on previous reports that the increments would be as high as BD200 per month, the MP said that such a large allowance would increase the budgetary deficit beyond 5 per cent of the Kingdom’s GDP, which is not acceptable either regionally or globally.
“This would also affect the exchange rate of the Bahraini dinar which goes against the nation’s interests,” she added.
Ms. Al Gaud explained that the Committee has already finalised the recommendations and they have been submitted to the Government.
“We are waiting for a response but the Budget proposals may not be taken up for discussion on Tuesday,” she told DT yesterday.
Discussing other aspects of the proposals, Ms. Al Gaud said that the Committee made no changes to the funds allotted for housing as GCC member states have agreed to give grants of $10 billion to Bahrain and Oman for infrastructure projects.
Under the scheme, Oman and Bahrain will receive $1 billion every year for the next 10 years. “Although housing is very important and the government has accorded it top priority, we did not recommend any enhancement to its allocated funding as the sector is getting money from GCC funds,” she said.
She stressed that the Budget should be passed at the earliest as the first quarter of 2011 is now already over. “Any further delay would affect the implementation of various infrastructural projects in the Kingdom,” she warned.