The Chamber of Deputies approved yesterday the BD3.4 billion expenditures, BD2.1 billion continuous expenditures, and BD905.4 million project in the two-year State budget expenditures with a deficit of BD503.9 million.

The expenditures budget for 2002 is BD1.4 billion and BD1.5 billion for 2006. A sum of BD1 billion is specialised for the on-going expenditures, including salaries and buildings maintenance for 2005 and BD1 billion for 2006. A total of BD418 million is this year's budget for projects, while BD487 million will be spent in 2006. The deficit is expected to reach BD308 million in 2005 and BD136 million in 2006.

The Chamber also approved the revenues after including BD10 million from Alba's revenues and for that the total non-oil revenues reached BD345 million for 2005 and BD360 million for 2006. The state revenues are BD2.5 billion, including BD1.2 billion for the current year and BD1.2 billion for 2006.  

The Financial Committee said that the deficit might not have occurred but for the high prices of oil. While reviewing the budget, the committee took into consideration the protection of the financial resources, cost cutting, including social projects in the budget, and highlighted the accuracy of the information.

The committee reduced the budgets of all ministries and public organisations, and recommended mechanisms to be financially independent. It called upon the Ministry of Information to seek sponsors for its entertainment, media and other activities.

The Ministry of Health was also motivated to follow the outsourcing policies for its basic administration works and to enhance the medical services BD2.8 million in the budget was allocated for development projects, including the expansion in the Intensive Care Unit at Salmaniya Medical Complex.

The committee asked the ministry and the Bahrain Defence Force Hospital to implement cost-cutting measures through supervising the medicine distribution operations, ensuring that expatriates pay fees for surgeries and monitoring the purchasing operations of medical equipment.

The committee called upon the Ministry of Interior to replace as soon as possible its expatriate workers with local manpower, enhance the security system in the Kingdom and privatise some of the ministry's services, such as sections of the traffic directorate.

To avoid deficits, the government is keen to cut their administration expenditures, while offering better social services for citizens. It also directed public organisations to design a framework of the best methods to invest some of their allocated budgets. The government will also motivate services ministries to enhance their revenues by improving their facilities. The government will also speed up the implementation of social insurance for expatriates to reduce the cost of medical services, and privatise the power and water sector.
The committee reduced the expansion of the Bahrain Exhibition Centre project by BD250,000 and allocated the amount to promote the Bahrain Centre for Investors.

In the Budget, BD45,000 is allocated for the renovation of the Sitra causeway and BD192,100 for road studies, while BD26,100 is for the establishment of a sewage network. Major parts of the budget was allocated for housing projects and BD90 million was allocated for each year, including BD26 million for housing units, BD24 million for buying and building loans, BD10 million for renovation loans and BD30 million for buying lands from individuals and companies.

A total of BD75.5 million for 2005 and BD63 million for 2006 are allocated for the Ministry of Electricity and Water for the construction of new power transmission stations, the maintenance of the Riffa Power Station and the expansion of Ibn Jarjoor water desalination station. Before approving the budget, the Chamber recommended to privatise some of the government services, stop the financial support to the Bahrain TV and the Ministry of Information Press unit and find a mechanism to cut unnecessary expenditure.

The Chamber also called upon the government to activate the role of the University of Bahrain and the Bahrain Centre for the Studies and Research to become leading research centres in the region. It also highlighted the importance of including the expenditures of the Royal Court in the Budget.

Deputy Dr Ali Ahmed called upon the government to cooperate with the Chamber for better services for the citizens. "Most of the Deputies' proposals have not been included in the budget so there is a need to allocate a special budget for the Chamber to implement its projects for citizens."

Deputy Ahmed Haji expressed doubts that the cost of planting trees for the Shaikh Khalifa Causeway could reach BD1 million. The Minister of Finance Shaikh Ahmed Al Khalifa said that the amount would also be allocated for irrigation connections and water storage system. Deputy Fareed Ghazi called upon the government to support the Bahrain Chamber of Commerce and Industry to enhance the involvement of the private sector in development.

"The BD1.5 billion debt should be reduced through cutting down the expenditures," Deputy Dr Ibrahim Al Abdullah said. Deputy Mohammed Khalid criticised the committee for cutting down the Chamber's budget and the head of the committee Jihad Bukamal said that the Chamber should set a good example for other public organisations. Mohammed said the government should not allocate a budget for tourism activities as the Kingdom had failed to attract tourists. Deputy Mohammed Al Khayat asked for an increase in the training budget to enhance the skills of local manpower. Some deputies showed their objection to allocate BD123 million in 2005 and BD136.6 million in 2006 under the supervision of the Ministry of Finance and Shaikh Ahmed said that the amount would be allocated for the emergency budget.

Deputy Dr Salah Ali said that the government should not refer to its support for needy and limited income families as assistance because the Kingdom's main responsibility is to offer decent living conditions for citizens. Regarding a remark by Deputy Yousif Al Harmi that the committee's recommendations were worthless, Bukamal said: "These recommendations are like political messages to the government and a warning to avoid the same mistakes in the future."

© Bahrain Tribune 2005

 

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