Sunday, October 30, 2011

MPs set for Government showdown

V L Srinivasan
Manama (Bahrain), April 26:

A deadlock between the Government and Parliament over a budget proposal to increase the salaries of Bahrainis appears to be coming to a head with MPs threatening to reject the budget if their demands are not met. 
Lawmakers have refused to budget on the proposal to increase Bahrainis’ salaries by 25 per cent, despite the Government’s warning that this would entail a burden of over BD500million on the exchequer for the next two years.
“We will reject the budget if our proposals to hike the salaries of public and private sector employees in Bahrain are not met. We are also looking to enhance the budget for the housing sector from BD120m to BD180m per year,” Vice Chairman of the Parliamentary Committee for Financial and Economic Affairs Othman Mohamed Sharif Al Rayes told DT.
The MPs are also demanding an increase in the budget for repairs on dilapidated buildings from BD10m to BD15m.
The MP explained that if they are forced to reject the budget, it will then be debated by the Shura Council. “We have to see whether they will agree to the bill or whether they will also turn it down and stand by us,” he said.
Mr. Al Rayes said that although the committee submitted the modified draft of the budget to the government more than seven weeks ago, there has been no response from the Finance Ministry.
The committee was to submit the draft to Council Chairman Khalifa Ahmed Al Dhahrani last week but decided to wait for some more days hoping that Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa, who was abroad at the time, would settle the issue.
However, no progress has been made since then, and the MPs are now adamant to go ahead with their proposals.
The Al Asala political society, which has been fully supporting the government in the Council, has also been critical of the Finance Ministry on this matter. Al Asala head MP Abdulhaleem Abdulla Murad told DT said that the government is not interested in hiking the salaries of employees despite the fact that there is no need to be concerned over the deficit as the budget was finalised when oil prices were calculated at $80 per barrel but this has now increased to $110. He explained that the oil hike will generate more revenue for Bahrain and help cover the cost of the salary increase.

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