These days are extensive meetings between the legislative authority and the government to coordinate before offering the public budget in order to search for a consensual division between the two authorities that can contribute or help us to solve the financial crisis that we suffer from.
As a reminder, the public debt of Bahrain amounted to 15.1 billion dinars, and for information, the public debt drains a large part of our budget, and with high benefits, we are difficult to yellow our debt, even if we give them one billion dinars annually, for example.
As a reminder, the actual deficit between state revenues and expenses increased from 186 million dinars in the year 2022 to 774 million dinars in the year 2023, or by 316%, and whenever we can reduce the expenses associated with public debt we can reduce the deficit, and we will not have to borrow, the benefits of public debt will not rise.
The meetings are to search for initiatives that help us to solve these dilemmas, and from time to time leaks, speculation, rumors and wow appear, until yesterday appeared what was called the general principles of the budget, but the budget has not yet been presented.
Imported from initiatives can reduce the deficit, but its impact on the economy is very negative.
Therefore – general opinion – these meetings are not a vote, but rather for the required coordination only, but what we are expected to hear is what the government will offer in a decree of a law for the public budget, and then the opinion of the financial committee in it and its report, and then the opinions of the rest of the members in the two rooms during public debate, and also what will be circulated among people in their councils and social media, so that the government convinces us of its point of view and seeing it in how we will pay It has our religion, our inability, and a reflection on the future vision of our economy.
I hope that the two authorities will not measure their successes in collecting the supporting voices of the government only and for its point of view, but that the two powers measure their performance with the repercussions of their policy on the economic situation, and this is a point that we must stop a lot, because the responsibility will fall on the two, and the two will bear it, not only the government, so there must be preparations to listen, accept objections, put alternatives, and take the side effects seriously And take it into consideration.
Some initiatives seem reasonable for raising revenues, especially those related to raising taxes on cigarettes and energy drinks, and on environmental pollution and carbon impact and even on companies ’profits, but with controls that do not get us out of the competitive scope, but rather raising support for the subsidized goods and replacing them with limited cash support and a certain category, this is a dangerous alarm that will not work with no benefit to the layer with limited income or even for the middle class, but its effects, but its effects A great negative economic (we do not forget to lift the electricity subsidies on the leased property prompted to leave a large part of the tenants and lose the real estate market).
The story is not that the government puts its point of view and in a way (this is what I see and you should see what I only see). We must take into account the results of the final accounts of the last four years to know if we are going on the right path, and to ask the general questions that go beyond whether we are closer to the payment of religion? Do we reduce the deficit? Do we achieve financial balance?
It is more important to ask these questions, and we discuss the budget; Because it is one of our most important economic tools, the most important reflection of this economic policy on the standard of living for the citizen? Did the layer of low -income people shrink? Or increased the result of our economic policy? Will the initiatives put in the budget contribute to controlling prices and inflation? How is the market? The currency? Unemployment? What is the case of the middle class, is it fine or shrinking? Are the proposals presented within the constitutional framework? All of these indicators must be taken into account before we say yes or no?
Therefore, the discussion must be public and actually compatible with public opinion. And that is the responsibility of the two authorities, and most importantly, these are the supreme directions of His Majesty the King, may God protect and preserve him, which always emphasizes that he does not impose anything without discussion and without consensus.
