Revenues fall to BD1.8bn amid weaker oil prices

TDT | Manama

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Lower global oil and gas prices pushed state revenues down by BD200 million in 2024 to BD1.8 billion, compared with BD2bn in 2023, while non-oil income recorded an increase, the Ministry of Finance and National Economy said.

Reduced production at the Abu Safa oil field during scheduled maintenance also contributed to the decline, the ministry told Parliament’s Financial and Economic Affairs Committee in written replies addressing remarks in the Financial and Administrative Audit Bureau’s 2024–2025 report.

In its response on the State’s unified final account for the fiscal year ending December 31, 2024, the ministry said efforts to reduce public debt remain tied to broader fiscal policy. It noted that when budgets are prepared with projected deficits, borrowing becomes necessary to finance expenditure and maintain essential services. Regarding external loans obtained by government-linked entities but not recorded within public debt, the ministry cited Article 108(b) of the Constitution, which permits public institutions to borrow against their own assets without those liabilities being classified as state debt.

The ministry said it continues to enforce compliance with the State Budget Law, urging government bodies to review financial obligations regularly to ensure spending remains within approved appropriations and to avoid over-commitment.

It added that Bapco Energies settled all returns due to the State for the 2023 and 2024 fiscal years during 2025, with the payments to be reflected in the 2025 final account. Monitoring mechanisms remain in place to ensure timely transfer of due revenues to the public treasury.

Addressing audit observations, the ministry said fixed asset inventory processes have resumed in line with the Unified Financial Manual, supported by a training programme for relevant staff. A review of the IT asset register policy is under way, with plans to maintain an updated and unified record by the first quarter of 2026. A procedural guide covering maintenance, replacement and disposal of IT assets is also being prepared.

Vulnerability assessments are conducted through a central system overseen by the National Cyber Security Centre, and a specialised firm will carry out penetration testing of systems and applications by the second quarter of 2026.

A business continuity committee has been formed to ensure operations continue during emergencies, and approval has been secured to host the ministry’s website on dual servers to improve resilience and availability by early 2026.