TDT | manama
Daily Tribune – www.newsofbahrain.com
Yesterday marked a significant milestone for Bahrain during the economic debate in the House of Representatives, which gave the go-ahead to important recommendations submitted by the Finance Committee.
The proposal is supported by a bipartisan group of five representatives headed by Jalila Al Said, Mohsen Al Asboul, Mohamed Rafai, Ahmed Kalata and Hisham Al Asheri. It calls on the government to develop a comprehensive strategy aimed at reducing public debt to its lowest level. conceivable level.
The move is strategically aligned with capitalizing on surplus cash created by the recent rise in oil prices. The core of this proposal is to exploit the surplus arising from the difference between the budgeted price and the actual price per barrel of oil.
Representatives argue that this strategy requires a thoughtful and pragmatic approach, underscoring the imperative to take advantage of these financial windfalls. In a statement echoing the proposal, MP Jalila Al Said emphasized the urgency of establishing a dedicated public debt management government.
He stressed that this is especially important at a time when oil prices are reaching unprecedented highs, resulting in large surpluses that are higher than originally budgeted.
Mr Al Said explained: “With the expected rise in oil prices, energy producers in the Middle East, including Bahrain, are on the verge of reaching, if not exceeding, fiscal equilibrium. As a result, large budget surpluses are on the horizon. , there is an urgent need to reduce public debt.
This is not just a fiscal responsibility, but also an important coordination between the government and its representatives, forming an integral part of the government’s action plan. ”
Increase in borrowings
The proposal highlights the historical trend of increased borrowing during the oil price slump of the previous year. This highlights the need for bold, pre-emptive measures to protect the economy during these difficult times.
Today, as oil prices rise and remain stable for a long time, this proposal insists on the need to address the repayment of these loans, which form an important aspect of the economic roadmap.
As the House of Commons rallies behind this positive proposal, the public awaits the government’s response and subsequent steps to shape the economic landscape in the wake of soaring oil prices.