Bahrain to Tackle Debt with Surging Oil Revenues

Bahrain, 20 May, 2024 : Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa announced plans to allocate the recent surge in oil revenues towards paying off public debts. With the average price of a barrel of oil reaching $84 in 2023 and $82 until March 2024, the minister anticipates the average price to exceed $80 this year.

Responding to MP Khalid Bu Onk's inquiry on oil prices, Minister Shaikh Salman highlighted that the law approving the general budget for fiscal years 2023-2024 was endorsed with a price cap set at $60 per barrel and a total deficit of BD681 million.

The increase in oil prices during the budget implementation period is expected to contribute to covering the actual deficits for fiscal years 2023 and 2024, thus reducing the volume of borrowing needed to finance the state's general budget.

Shaikh Salman emphasized the importance of utilizing any savings achieved in the state's general budget to reduce and pay off public debt. This strategic move aims to lower interest levels on government debt in the coming years.

Source : www.zawya.com