Raise in debt ceiling okayed

During the weekly meeting of the Council of Representatives, MPs discussed multiple matters with representatives of the government including Ministers and general directors.

The session which was chaired by Speaker Ahmed Al Mulla was attended by Parliament and Information Affairs Minister Isa bin Abdulrahman Al Hammadi, Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa, Education Minister Dr. Majid Al Nuaimi, Industry, Commerce and Industry Minister Zayid bin Rashid Al Zayani and Works, Municipalities Affairs and Urban Planning Minister Essam Khalaf.

Increasing Public Debt Ceiling to BD10 billion

One of the main topics that was discussed during yesterday’s meeting was the council’s Financial and Economic Affairs Committee’s decision to pass a law decree to increase the public debt ceiling to BD10 billion.

The discussion which lasted for three hours ended with approving the proposal that increases the debt limit from BD7bn to BD10bn, after 18 MPs voted for it and 14 opposed.

Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa said:  “We need to increase the debt ceiling in order to cover the financial commitments of the state budget. 

“The Kingdom is obliged to decrease the public debt, but at the same it’s necessary considering the existing deficit.”

On their part, the supporting MPs to the law decree stated that it’s required as crude oil price (main income of the country) is dropping and the deficit has increased.”

Committee Head Abdulrahman Buali commented:  “I’m against increasing the public debt limit, but we have no choice at this time.”

“It’s necessary to enable the government to implement the projects that it’s committed to in its action plan,” he added.

Supporting Buali’s statement was MP Majid Al Majid, who said:  “We’re forced to agree to this proposal, considering the exceptional financial situations the country is going through.”

MP Mohammed Al Jowder said that “we’re expecting the Finance Ministry to provide us with the necessary information on how will the state pay its debts,” while MP Abdulla Binhowail stated, “Our country’s stability and security oblige us to agree to this decision, considering the exceptional situations that the country and the region are going through.”

On the other hand, the MPs who voted against the law decree claimed that “the Finance Minister isn’t transparent when we ask for important information in regards to the public debt during the past years”.

They alleged that “the ministry lacks strategic planning, diversifying income sources and plans to face the upcoming poor financial situations of the country.”

Shaikh Ahmed stressed that the ministry is able to coordinate with the council to overcome the financial challenges that are facing the country.

Speaking optimistically, the minister said: “We still have many areas to overcome the current exceptional situations, such as subsidies removal from companies and expats, in addition to imposing more taxes and fees to contribute to the state budget.”

The minister also affirmed that “despite these situations, no projects mentioned in the government action plan would be affected and citizens’ interests will not be harmed”.

He denied the claims of corruption in the governmental bodies, calling those who make these allegations to do their national duties and report it to the institutions concerned.

Several proposals approved

During the session, MPs voted for several proposals that included establishing a flyover on Al Fateh junction near Juffair, solving the “environmental crisis” of Tubli Bay, constructing a small mosque in Al Fateh Corniche, launching a hotline service for judicial related inquiries, increasing the numbers of driving instructors and acquiring the lands near Damistan coast and make it a public beach. 

Meanwhile, MPs rejected a proposal that stipulates the establishment of a ministry for planning and scientific research.