The increase in oil revenues arising out of the recent surge in prices will be used to pay off public debts, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa has said.

The average price of a barrel of oil reached $84 in 2023 and $82 until March 2024, he pointed out.

“The average price is expected to exceed $80 this year according to initial international studies and statistics,” he added, responding to a question by MP Khalid Bu Onk on oil prices.

The minister stated that the law approving the general budget for the fiscal years 2023-2024 was endorsed with a price cap set for $60 per barrel and a total deficit of BD681 million.

“The increase in oil prices during the budget implementation period will contribute to paying the actual deficits during the fiscal years 2023 and 2024,” he said.

“As a result, the volume of borrowing to cover the financing needs to mend the existing and expected deficit in the state’s general budget will decrease.”

Shaikh Salman pointed out that if savings are achieved in terms of the total balance of the state’s general budget, it is necessary to exploit them to reduce and pay off the balance of public debt, which will in return cut the interest levels on government debt in the upcoming years.

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