V L Srinivasan
Manama (Bahrain), April 18:
Following a months-long deadlock between the Parliament and the Government over a proposed 25 per cent salary hike for Bahraini workers, MPs are now looking to His Majesty King Hamad bin Isa Al Khalifa to solve the impasse.
The Parliament wishes to include the proposal in the new budget for 2011 and 2012, however the Government has warned that any such hike would result in an increased deficit for the Kingdom. As a result, the Parliament has repeatedly postponed approving the budget, despite it being long overdue.
The last time salaries were increased was three to four years ago. MPs feel that the cost of living has increased significantly since then and citizens should be given higher salaries to help them cope with their financial burdens.
“This issue was raised by voters during the elections last year,” a lawmakers told DT.
“On an earlier occasion, we requested the Government to provide Bahraini families with an inflation subsidy, and His Majesty the King issued a directive to this effect, bringing smiles to the faces of Bahrainis,” he said.
Also speaking to DT, head of the Al Asala bloc MP Abdulhaleem Abdulla Murad said that the Government is not interested in implementing any such salary hikes and expressed fear that the Parliament may not approve the draft budget if the salary proposal is not included.
Mr. Murad, who is also a member of the Financial and Economic Affairs Committee, explained: “If salaries increase, the burden on the exchequer is estimated to be BD250million every year. I am afraid we may have to reject the budget without any discussion. The budget is the biggest and most important issue and if we do not accept it, it means that the people are against it as we represent them,” he said.
He dismissed the ministry’s claims that the salary increase would burden the national economy. “The budget was finalised with oil prices at $80 per barrel but this has now increased to around $110 and will shoot up further beyond $120 as the demand for oil is expected to grow in the coming months. This, in turn, will help generate more revenue,” he said.
“This is an exceptional case and it is not just financial aspects that should be considered. We should think about how we can overcome the deficit in a different manner as this, certainly, is not the way,” he said.
He added that the Government always pushed MPs to pass the Budget in the past but this year is not showing any interest in doing so.
The MP also pointed out that the Government should not simply depend on oil revenues and should diversity the Kingdom’s economic activities by increasing income from non-oil sectors.
Manama (Bahrain), April 18:
Following a months-long deadlock between the Parliament and the Government over a proposed 25 per cent salary hike for Bahraini workers, MPs are now looking to His Majesty King Hamad bin Isa Al Khalifa to solve the impasse.
The Parliament wishes to include the proposal in the new budget for 2011 and 2012, however the Government has warned that any such hike would result in an increased deficit for the Kingdom. As a result, the Parliament has repeatedly postponed approving the budget, despite it being long overdue.
The last time salaries were increased was three to four years ago. MPs feel that the cost of living has increased significantly since then and citizens should be given higher salaries to help them cope with their financial burdens.
“This issue was raised by voters during the elections last year,” a lawmakers told DT.
“On an earlier occasion, we requested the Government to provide Bahraini families with an inflation subsidy, and His Majesty the King issued a directive to this effect, bringing smiles to the faces of Bahrainis,” he said.
Also speaking to DT, head of the Al Asala bloc MP Abdulhaleem Abdulla Murad said that the Government is not interested in implementing any such salary hikes and expressed fear that the Parliament may not approve the draft budget if the salary proposal is not included.
Mr. Murad, who is also a member of the Financial and Economic Affairs Committee, explained: “If salaries increase, the burden on the exchequer is estimated to be BD250million every year. I am afraid we may have to reject the budget without any discussion. The budget is the biggest and most important issue and if we do not accept it, it means that the people are against it as we represent them,” he said.
He dismissed the ministry’s claims that the salary increase would burden the national economy. “The budget was finalised with oil prices at $80 per barrel but this has now increased to around $110 and will shoot up further beyond $120 as the demand for oil is expected to grow in the coming months. This, in turn, will help generate more revenue,” he said.
“This is an exceptional case and it is not just financial aspects that should be considered. We should think about how we can overcome the deficit in a different manner as this, certainly, is not the way,” he said.
He added that the Government always pushed MPs to pass the Budget in the past but this year is not showing any interest in doing so.
The MP also pointed out that the Government should not simply depend on oil revenues and should diversity the Kingdom’s economic activities by increasing income from non-oil sectors.
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