WASHINGTON: Bahrain is making good progress on its fiscal consolidation plan and is on track to eliminate its deficit by 2022 as planned, said Finance Minister Shaikh Salman bin Khalifa Al Khalifa.
“We’ve had very good execution so far,” he told Reuters, when asked if Bahrain would meet its target.
“We’ve been very disciplined with regard to executing the fiscal balance plan and ensuring that we’re executing with regards to the targets.”
Bahrain had reduced its deficit by 37.8 per cent in the first six months of 2019, while increasing non-oil revenue by 47pc.
It also cut administrative costs by 14pc and had 18pc of civil servants accept voluntary retirement packages, he said.
It was critical to ensure job creation, and spending on health, education and other social services remained strong as Bahrain continued its consolidation programme, he added.
“As we continue to execute the fiscal balance plan, we will want to ensure that we continue to see positive economic growth and job creation,” he said.
He gave no details on borrowing plans for the coming year, but said half of borrowing needs would be met by the aid package from Saudi Arabia, the UAE and Kuwait, and half from the market.
As well as introducing a value-added tax in January, the government has cut subsidies, raised fees and is pushing economic diversification and inward investment.
Shaikh Salman said job creation had been a heavy focus during the International Monetary Fund and World Bank Autumn meetings in Washington this week.
“Maintaining economic growth is important but job creation is important regardless of where you are in the business cycle,” he said.
In addition, he said the government had launched a mobile phone application, Tawasul, that allowed citizens to file complaints about the government.
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