Parliament votes to add public bodies’ surpluses to state budget

TDT | Manama

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Parliament yesterday passed a draft law that would pull year-end budget surpluses from all public authorities and public institutions into the state budget.

The law also requires that at least half of the net profits due to the state from Mumtalakat and Bapco Energies be included, despite government calls urging MPs to reconsider.

In its amended form, the draft says “the surpluses of the budgets of all public authorities and public institutions” must be included in the state budget, with no carve-outs.

It also says the budget must include “a percentage of not less than 50%” of the net profits accruing to the state from Mumtalakat Holding Company and Bapco Energies, after the statutory reserve has been set aside.

MP Zainab AbdulAmeer argued in the chamber that the change would tie state-owned company returns more clearly to public finances.

“We are living through an unusual time,” she said, linking the debate to calls for reforms and pressure tied to credit ratings.

“The Bahraini today is the one paying the bill for public debt.”

She also questioned why state-owned firms, could lean on public funds when they hit trouble but keep profits at arm’s length from the budget in better years.

Proposal

The government urged MPs to reconsider, saying much of what the proposal sought was already covered by existing law and practice.

It also warned that pulling all public bodies’ surpluses into the state budget could add costs if the budget became responsible for the spending, losses, or debts of bodies that now run under their own financial systems.

After passage in the Council of Representatives, the bill now moves to the next stages, including review in the Shura Council, before it can be ratified and published.