Latest news with #BD843
Daily Tribune
07-05-2025
- Business
- Daily Tribune
MPs reject state accounts and endorse 11 recommendations for audit reforms
Eleven recommendations to improve oversight and control over public spending have been backed by Parliament, following a yearend audit that uncovered BD3.9 billion in unrecorded state borrowing and a budget gap that more than tripled in 12 months. However, MPs stopped short of endorsing the government's financial statements. In yesterday's session, they rejected the final accounts for 2023, the budget execution report, and a breakdown of ministerial fund transfers prepared by the Ministry of Finance. The Financial and Economic Affairs Committee's report, based on the National Audit Office's 2024 review, was approved. It sets out 11 proposals aimed at correcting long-standing failures in procurement, record-keeping and debt reporting. The measures call for a clear shift in how ministries handle public funds. Repeated violations MP Maryam Al Dhaen described the report as 'a clear plan that deserves to be followed' and said repeated violations had become routine. 'Some of the answers we receive are for show,' she told the chamber. 'What's needed is responsibility. Each agency, each person, must be held to account.' She called for a public timetable to carry out the proposals, and for regular updates to Parliament on the steps taken. Figure Minister for Parliamentary Affairs, His Excellency Ghanim Al Buainain, told MPs that the government had already acted on more than 84 per cent of the audit's findings. That figure, he said, had improved on the previous year. A new digital system had made it easier to track progress, and closer contact between the Audit Office and government bodies had sped up responses. He said 315 observations had been addressed, with 153 breaches reviewed internally. Two were referred to the ministerial legal committee. None were sent to the Public Prosecution. Sharp verdict MP Hassan Ibrahim gave a sharper verdict. 'The repeated breaches revealed in the report point to a structural shortcoming in financial and administrative oversight,' he told the chamber. He cited BD223 million in overspending in 2022, uncollected public funds, and repeated failures in managing vehicles, stockpiles and contracts. The lawmaker also noted that some ministries had hired foreign workers despite earlier pledges to limit hiring to Bahrainis. Formal signing In several cases, contracts were delayed by over a year or began without formal signing. Ibrahim pointed to the size of the national debt, which reached BD17.9 billion by the end of 2023. This figure equals roughly 131 per cent of GDP at constant prices. Interest payments alone totalled BD843 million. 'We're dealing with billions in loans, some of which were never recorded. That should worry anyone in this room,' he said.
Daily Tribune
09-03-2025
- Business
- Daily Tribune
Government committed to enhancing public services while managing debt
The Ministry of Finance and National Economy has reaffirmed the government's commitment to improving the quality and efficiency of public services while maintaining economic stability and growth. In a statement, the ministry emphasised that enhancing fiscal performance is expected to generate budget surpluses, which will be directed toward reducing public debt and strengthening its long-term sustainability. The announcement comes as public debt reached BD17.9 billion, with interest payments amounting to BD843 million, according to the ministry's latest figures. The data, sourced from the state's final accounts for the financial year ending December 31, 2023, was disclosed in response to a parliamentary inquiry by MP Khalid Buanaq. This comes following a ministry report that shows public debt has reached BD17.9 billion, with interest payments standing at BD843 million. The figures, drawn from the state's final accounts for the financial year ending 31 December 2023, were disclosed in response to a question from MP Khalid Buanaq. Final accounts Work is in progress on the final accounts for 2024, with the ministry stating that the report will be sent to Parliament once completed. Debt is repaid through local and overseas financial markets or, where possible, from surplus funds. The ministry linked the borrowing to shortfalls in the budget, citing Article 6 of the General Budget Law, which allows for borrowing from financial institutions and Arab and Islamic funds to cover shortfalls. Approach As long as deficits persist, borrowing will remain part of the approach. The ministry noted that debt levels should not be looked at in isolation but alongside economic growth. Gross domestic product recorded an average yearly rise of 9 per cent from 2021 to the end of 2023. On debt management, the ministry said the approach is shaped by the government's financial policy, with funding needs and repayments assessed to keep costs as low as possible. Cash flow Borrowing schedules are arranged to ease pressure on cash flow. A range of measures is being rolled out as part of the Fiscal Balance Programme and the Economic Recovery Plan, with the government working to lift revenue, broaden income sources, and cut day-to-day costs. 'The government is working to raise the standard and efficiency of public services while keeping the economy on an upward track,' the ministry said. 'This is expected to help build surpluses that can be fed back into reducing public debt and improving its long-term outlook.'
