Details in the draft of Bahrain’s budget show more than BD 5 billion (or $13.26 billion) in spending covering a two-year time period.
As summarized yesterday, overall spending figures are forecasted to hit BD 5.3 billion for 2011 and 2012. The data was revealed in a press conference by Shaikh Ahmed bin Mohammad Al Khalifa, the Minister of Finance.
The minister announced that nearly half of the funds are being spent on subsidies, as BD 2.47 billion is marked for controlling the living costs of the public.
Plans are in the works however to alter the system, allowing the benefits to reach only lower income Bahrain residents.
The budget has BD 1.6 billion set aside for oil and gas subsidies with BD 868.4 million allocated for subsidies on basic necessities like food and housing, water and electricity, according to the minister.
Total revenue for Bahrain is forecasted at BD 4.4 billion and oil generates 83 percent of those funds.
The government has plans to make use of Islamic bonds as well as loans to cover the deficit, according to Shaikh Ahmed.
The minister noted that forecasted spending will reach BD 5.3 billion over a two-year period. Recurring expenditures account for BD 4.148 billion of that figure and projects are claiming BD 1.105 billion.Paul Holdsworth, Staff Writer, Gulf Jobs Market News