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Why Is Public Debt Increasing Despite Rising Oil and Aluminium Prices ? Ibrahim Sharif

2022-05-07 - 3:08 am

Bahrain Mirror: Opposition leader Ibrahim Sharif wondered why public debt is rising despite record high oil prices. 

Sharif's question comes after the Central Bank of Bahrain published data on Thursday (May 5, 2022) stating that public debt increased to 14.6 billion BD, by 9% year-on-year at the end of the first quarter of 2022.

"Why is public debt rising even in the fat years?" Sharif said via his twitter account.

"Public debt is rising by 9% in a year despite the significant increase in oil and aluminium prices and the increase in VAT!"

Sharif asked where these increases are being disbursed.

The International Monetary Fund (IMF) expects Bahrain's oil revenues to rise by 39% with the increase of oil prices, giving Bahrain wider options in dealing with its financial crisis and public debt. 

Bahrain will earn an additional $11 billion (4.1 billion dinars) in 2022.

The government has estimated this year's total budget deficit at 1.1 billion dinars, which means Bahrain will record an estimated budget saving of 3 billion dinars.

A report published by Bahrain Mirror says that according to previous experiments, the Government transfers funds to disbursements and says that are confidential. These disbursements are often for the accounts of senior ruling family members or military spending.

There are no parliamentary oversight mechanisms in Bahrain in a way that allow citizens to check if these amounts will be used for the public, not the private, benefit.

Arabic Version