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98% increase in Bahrain's budget deficit within 6 months of 2020

August 11, 2020 at 12:35 pm

A man looks to exchange money at a bank in Manama, Bahrain 11 August 2010 [Joe Raedle/Getty Images]

The Kingdom of Bahrain’s state deficit increased by 98 per cent in the first six months of the year, Bahrain News Agency (BNA) reports.

After Bahrain’s Ministry of Finance and National Economy completed its biannual financial report for 2020 for ministries and government agencies, it was found that the total actual revenues obtained by government amounted to 910 million dinars ($2.4 billion) a decrease of up to 29 per cent compared to the same period last year.

Due to low oil prices, oil revenue also decreased by 35 per cent, in comparison to the same period during the fiscal year of 2019.

According to the Minister of Finance and National Economy Shaikh Salman Bin Khalifa Al Khalifa, the kingdom continues its commitment to achieving all its comprehensive development goals despite the challenges presented by the global drop in oil prices and the coronavirus pandemic.

READ: Bahrain cuts spending by 30% to help battle coronavirus

In May, Bahrain received $4.57 billion in urgent financial aid from its Gulf Arab neighbours as part of a support package approved in 2018, a government document revealed.

In October 2018, Saudi Arabia, Kuwait and the United Arab Emirates agreed to give Bahrain $10 billion to execute a reform programme to support the country’s fiscal crisis and reduce its budget deficit by 2022.

The reform programme, sources said at the time, would include cutting the kingdom’s public expenditure and government waste, voluntary retirement for government workers and redirecting state subsidies.