The Bahraini Minister of Finance and National Economy, 'Abd Allah Saif, has announced details of the 2003-04 budget, following its ratification by both the Consultative Council (Shura) and parliament. The two-year budget projects total expenditure at BD2,347.7mn ($6,227.3mn), total revenue at BD1,603mn ($4,252.0mn) and a resulting deficit of BD744.7bn ($1,975.3mn). These budget numbers differ slightly from the earlier estimates for the 2003-04 budget, which were originally approved by the Bahraini Government in mid-2002. At the time it was announced that the budget was prepared within the framework of a medium-term financial plan in cooperation with the World Bank. The 2001-02 budget projected expenditure of BD1,658mn ($4397.9mn) and revenue of BD1,344mn ($3565.0mn), with a deficit of BD314mn ($832.9mn). But the deficit did not in fact materialize and Bahrain had an actual budget surplus in 2001 of BD148.1mn ($393.8mn - MEES, 17 June 2002).

Mr Saif said that the budget projects GDP growth of 6.5% annually at current prices and the creation of some 10,000 to 12,000 new job opportunities. According to the minister, the main objectives of the budget are to: (a) implement development-oriented projects and programs in infrastructure, health, education and housing sectors; (b) support projects which aim to raise the standard of living; (c) provide for the needs of the public sector; and (d) modernize the organizational structure in government, provide training and employment and bring about Bahrainization in order to solve the problem of unemployment.

The 2003-04 budget allocates BD332mn ($880.6mn) for education and BD177.3 ($470.3mn) for health services, while the public administration sector will absorb BD600mn ($1,591.5mn) over the two-year period. The latter includes a defense allocation of BD169.21mn ($448.8mn) in 2003 and BD171mn ($453.6mn) in 2004. The allocation to social services in the first year is set at BD243.6bn ($646.2mn). According to a report in the Gulf Daily News of 12 June, Bahrain’s oil revenue is expected to rise from BD365mn ($968.2mn) in 2002 to BD490mn ($1,299.7mn) for each of 2003 and 2004.

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