Due to the financial deficit in Bahrain, the country is facing significant financial challenges at present, with the financial deficit and the high public debt remaining without clear solutions. In these circumstances, the tracking of state expenditure continues without official oversight noticeable to everyone, putting the financial situation in an unfavorable predicament.
These signals were recently renewed through statements made by Abd alJalil Khalil, a leader in the Al-Wefaq Society, who once again shed light on this issue, indicating that achieving stability in Bahrain’s public finances would only be possible through a fundamental addressing of the financial deficit and the increasing public debt.
To illustrate this, Khalil referred to a study highlighting the role of non-oil sectors in boosting Bahrain’s economy amid the current financial challenges.
According to this study, the weakness of public finances, including the large financial deficit and increasing levels of public debt, poses an obstacle to Bahrain’s aspirations for economic reform and poses a threat to the country’s economic future, despite Bahrain having the smallest economy among the Gulf Cooperation Council countries.
Reasons for the financial deficit in Bahrain
On the other hand, economic growth has slowed down due to several factors, including the increase in public debt until December 2022, reaching about 16.7 billion dinars according to figures from the Ministry of Finance, exceeding the specified ceiling by more than 700 million dinars.
Furthermore, state funds are being drained due to unlimited spending on armament in Bahrain, which contradicts its financial capabilities.
According to a report issued by the Stockholm International Peace Research Institute, military expenditure in Bahrain in 2017 amounted to 4.1% of the gross domestic product, equivalent to 1.396 billion dollars, compared to 1.505 billion dollars in the previous year.
These figures are significantly escalating, while the government adopts an executive policy that contributes to depleting the country’s wealth, further exacerbating the deterioration of the public budget due to the continuous increase in debt, borrowing, and financial deficit in Bahrain. In this context, citizens continue to suffer from unemployment and deprivation of basic services, reflecting the difficult situation the country is going through.
source: lualuatv
