Manama- Bahrain expects state revenues to top BD4.4 billion ($11.67 billion) over the next two years, it was revealed at an extraordinary Cabinet meeting to discuss the 2011-2012 budget plan.
His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa chaired the meeting at his court in Manama.
The overall state revenues are estimated to average BD2.192 billion next year. An estimated BD2.247 billion is expected to enter the state coffers during the 2012 fiscal year.
Under the draft two-year budget plan, the overall state expenditure is estimated to reach BD5.3 billion - BD2.6 billion next year and the remaining BD2.7 billion in 2012.
The budget plan estimates the overall public deficit to reach BD813 million - an estimated BD373 million for next year and the remaining BD440 million for 2012. 'The government banks on borrowing from the local market to bridge the deficit through bonds treasury bills,' Cabinet Affairs Minister Shaikh Ahmed bin Ateyatala Al Khalifa said. Bahrain will also secure soft loans from financial institutions, and Arab and Islamic funds. The session approved the draft budget and referred it to the legislative authority for scrutiny. Under article 109 of the constitution, the government is bound to draw up the draft budgets and refer it to parliament at least two months before the end of the fiscal year.