Bahrain Mirror (Exclusive): Finance Minister Salman bin Khalifa Al Khalifa has become known for repeating tired clichés in his media appearances. These well-worn phrases, while once meaningful, have lost their original impact. It's common for many officials to regurgitate these memorized statements without real comprehension.

For instance, in his recent interview with Bloomberg, the Finance Minister touted reaching fiscal balance by 2024, repeatedly invoking terms like "initiatives," "plans," and "economic opportunities" to create an impression of competence. He claimed, "Various initiatives have curtailed expenditures and bolstered revenues, all while sustaining economic growth and job creation." Yet, he later reverted to the notion that the balance hinges on high oil prices. This begs the question: What's the use of these initiatives if public finances remain tethered to oil prices?

Over two decades, Bahrain's leadership has echoed these words derived from McKinsey's well-worn playbook, to little avail, as the nation's finances remain tethered to oil. The notion of "initiatives to diversify income sources" seems elusive.

Besides levying taxes and fees on citizens, can the Minister of Initiatives demonstrate tangible actions to augment state revenues?

Turning to the state budget, it's evident that the revenue increase in recent years, aside from oil prices, is primarily attributed to value-added and excise taxes.

The National Bureau of Revenue, the second-highest revenue source after oil, is projected to generate over 1.2 billion dinars ($3 billion) for the fiscal years 2023-2024. This underscores that the initiatives may merely be burdens on the less fortunate.

If the government couldn't attain fiscal balance in the first half of the year, despite rising oil prices, when can we expect it?

The government announced a budget deficit increase of 381 million dinars, a stark contrast to the fiscal results of other oil-dependent Gulf nations, which have seen decreases in deficits or even surpluses.

In reality, the most crucial initiative needed to restore budget equilibrium is for the ruling family to regard state revenues as the public's funds, belonging to all citizens. They should not be treated as the family's personal funds to spend at their discretion.

Arabic Version