Fitch: Voluntary Retirement Scheme to Save up to 166 M Dinars

2019-03-06 - 3:34 am

Bahrain Mirror: Fitch estimated that there would be $3 billion to $5 billion outstanding external debt in the period from 2019 to 2022, noting that 8.7 thousand employees had applied for Voluntary Retirement Scheme out of about 48,000 employees, which would save an amount of 166 million dinars in 2019 (11% of the wage bill for 2018).

Bahrain is aiming to gain around BD 150 million from VAT revenues, while revenue is expected to increase by 2020 to BD 300 million, the credit rating agency Fitch said. The Kingdom has succeeded in significantly reducing the deficit of the GDP, and is expected to continue to decrease in the coming years, reaching 6.1% and 5.3 in 2019 and 2020, consecutively.

The agency noted that the fiscal balance program aims to achieve financial savings estimated at least 800 million dinars (5.4% of GDP), as well as measures that include rectifying the subsidies, reducing the operational cost and VAT enforcement.

In a recent report, Bahrain announced that it succeeded significantly in reducing the deficit in the general budget to reach 7.6% of GDP in 2018 compared to 12.3% in 2017, supported by an average rise in oil prices by 33%.

The Bahrain Government said that they aim to eliminate the deficit by 2022 with the reduction of government debt thanks to the Bahrain Fiscal Balance Program announced last October 2018 with support from Saudi Arabia, the UAE and Kuwait through financial aid of $10 billion.

Fitch affirms Bahrain at 'BB-'; with expectations for a "stable" outlook.

Arabic Version

 



المصدر: Bahrain Mirror
رابط الموضوع: http://bhmapi.servehttp.com/en/news/53016.html