New measures to ensure continued economic growth which reflects positively on people’s living standards will be drawn up with the help of legislators, assured a top minister.Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa told MPs that Bahrain’s real gross domestic product (GDP) had recorded the highest growth rate since 2013.However, he said economic difficulties being felt globally needed to be addressed.

The minister was responding to a question, during its weekly session yesterday, on the financial status of Bahrain and future steps to strengthen the economy.SuggestedIn order to boost revenues, Parliament financial and economic affairs committee vice-chairman Jalal Kadhem suggested that a five per cent tax be charged on companies’ profits, in addition to transferring the sovereign fund Bahrain Mumtalakat Holding Company’s profits to state coffers and having expats renew their driving licences every two years rather than five, in line with the work permit duration.“All proposals will be put on the table as we debate the 2023-2024 state budget,” said Shaikh Salman.

“The priority is improving the living standards of people. We have come up with our own measures but we’ll work with the legislators as we sail the ship to safe whilst also ensuring that people get what they want.“We have reported the highest economic growth since 2013. That’s a positive indicator, but that doesn’t mean there are no public debts, budget deficits or commitments.”The minister pointed out that a surplus was registered as some financial obligations were postponed from last year to this year.The draft state budget was approved by the Cabinet on Monday and now legislators wait to receive it.“The public debt reached BD16.9 billion in 2021, but dropped to BD16.7bn in 2022,” said Shaikh Salman.

“This was the result of launching programmes to revitalise, enhance and increase productivity in the oil and gas sectors that continue to be massive contributors to the real GDP, with the non-oil sectors now contributing 83.1pc to the economy.“The economy jumped from BD14.4bn in 2021 to 16.7bn in 2022.”He said it was a full circle economic approach that Parliament needs to support.“We are tightening up on spending in all government departments,” said Shaikh Salman as MPs discussed the government’s rejection of a proposal on overtime payments.“Overtime has not been completely suspended, it has been restricted to jobs that need them.

“There are seven ministerial teams in charge of rationalising spending, and when a system that is right is finalised then more jobs will be added to the overtime list.Parliament and Shura Council Affairs Minister Ghanim Al Buainain said ministers were working without getting overtime, denying claims that minister and government officials were being paid overtime.“There are 2,402 civil servants being paid overtime,” he added.mohammed@gdnmedia.bh

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