$132mln emergency fund to fight COVID-19 requested in Bahrain

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MANAMA: An emergency fund of BD50 million has been earmarked to tackle Covid-19.

The government included the request to set aside the amount in a new revised state budget for 2021-22, which has been accepted by MPs.

It follows a change in the oil barrel base peg from $45 to $50 last week, which is set to reduce the deficit by BD160m this year.

Parliament’s financial and economic affairs committee yesterday held an urgent meeting with MPs to discuss the revamped budget which was presented on the same day.

Committee chairman Mahmood Al Bahrani said the new Covid-19 fund would help the government tackle any emergencies faced by the health department in the wake of new and more infectious Covid-19 variants.

“To overcome the new strain of Covid-19 and other needs related to the spike in numbers, the government has inserted BD50m for medical requirements this year,” Mr Al Bahrani said.

The revised budget also includes increasing recurrent expenditure on manpower and administrative spending by BD100m over two years, while spending on projects is set to go up by BD53m.

Mr Al Bahrani said social welfare spending has been increased by BD14m this year and BD43m next year to match spending in the 2019-2020 national budget.

Municipal revenues would be used for infrastructure projects within neighbourhoods with BD35m allocated for two years.

In return, the Works, Municipalities Affairs and Urban Planning Ministry would get BD1m to be used for recruitment of more Bahrainis.

Additionally, operational costs for animal wealth affairs have been increased by BD300,000.

Mr Al Bahrani revealed that the Information Affairs Ministry has also been allocated BD500,000.

“The revamped budget now reflects all new numbers and is in a better shape than what was originally presented to us despite these difficult times,” he said.

General revenues are now BD2.486bn for this year and BD2.457bn for the next.Bahrain Mumtalakat Holding Company is also set to pump in BD40m over two years.

The National Bureau for Revenue (NBR) will contribute BD360m this year instead of BD340m and BD566m instead of BD543m next year.“

The deficit will be BD500m this year and BD355m the next year following the increase in the oil barrel base peg,” said Mr Al Bahraini.

“Even with more spending, rationalising the expenditure has to continue while presenting services without disruption,” he added.

The budget is yet to be presented for voting in both Parliament and the Shura Council.

mohammed@gdn.com.bh

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