Finance Minister outlines draft two-year budget

Manama, May 4(BNA): The Government has approved $60 per barrel as oil benchmark price for the general state budget, said Finance Minister Shaikh Ahmed bin Mohammed Al-Khalifa. He said that the two-year budget plan (2015-2016) will be put under the theme "financial discipline towards economic growth", pointing out that citizens' gains will not be affected. In press briefing following the weekly cabinet meeting, he said that housing would top the priorities, citing plans to construct 25,000 units which be funded through the state budget and the Gulf Development Support Programme. The minister said that the overall oil revenues are estimated to average BD4.3 billion over the coming two years. Citing key figures, he said that Abu Saafa field output would top 150,000 barrels per day while Bahrain Field is expected to reach a daily output of 47,200 barrels next year. He said that one dollar would be deducted on each barrel whose price exceeds $40 to be deposited with the Future Generation Reserve Fund. He announced that BD1 billion would be allocated under the two-year budget plan for projects, which include the construction of a national oncology centre. He pointed out that the budget deficit for 2015 is expected to hit BD1.474 billion and soar to BD1.583 billion in 2016, adding that these estimated figures would fluctuate in accordance with volatile oil prices. The draft budget has allocated BD150 million to dissociate the Bapco budget from the one earmarked for the government, starting next year. The minister said that the Gulf Development Support Programme would be used to spur economic growth, diversify projects to cover various sectors, in addition to improving services and creating jobs for citizens. He announced that new criteria would implemented to enforce spending restraint and principles of good governance in all ministries and government departments in accordance with premium international practices. The draft two-year gives priority to reducing expenditure and recurrent expenses in addition to enhancing the government performance. The Government is planning to focus on the sectors which have the potential to spur growth and create new added value economic opportunities to generate rewarding jobs. Information Affairs Minister Isa Abdulrahman Al-Hammadi hailed the directives of the wise leadership to draw up a new cadre for media personnel, pointing out that a plan would be elaborated to achieve the scheme in cooperation with the Civil Service Bureau.