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FINANCIAL NEWS
Bahrain to slash spending by 6% in 2013
08 Nov 2012
(MENAFN) Bahrain’s finance ministry undersecretary, Aref Saleh Khamis, stated that next year, the government would slash budget expenditure by around 6 percent to restrain deficit, reported Arabian Business.
Khamis said that in the coming 2 years; budget spending is forecasted to reach USD18.5 billion, of which USD9.09 billion would be in 2013 and USD9.33 billion in 2014.
In order to calm social and political unrest, the tiny Kingdom, which planned to spend USD9.62 billion in the current year, increased its original 2012’s spending plan by around 19 percent.
The budget gap for next year is expected to reach USD1.74 billion, that’s 6.1 percent of gross domestic product (GDP) and to grow to USD1.98 billion or 6.6 percent of GDP in the following year.
It is worth noting that in both 2013 and 2014, revenue is expected to increase to USD7.35 billion from this year’s plan of USD6.64 billion, based on an average budgeted oil price of USD90 per barrel, up from the USD80 in the preceding 2-year period of 2011-2012.
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