Font Size

- Aa +

Mon 27 Oct 2008 07:38 AM

Font Size

- Aa +

Bahrain uses $60 oil as benchmark for new budget

Proposals laid out by Prime Minister for two year plan, spending to top $10.8bn.

A benchmark oil price of $60 a barrel has been adopted by Bahrain as it puts in place its budget for the next two years, it has been announced.

The cabinet chaired by Prime Minister Shaikh Khalifa bin Salman Al Khalifa referred the draft plan on Sunday to the legislative authority for more scrutiny.

The current global economic turmoil and its detrimental effect on oil prices (currently at just under $64 a barrel) were taken into account, Gulf Daily News reported on Monday.

The projected revenues for 2009 have been estimated at 1.836 billion dinars ($4.8 billion) and 1.897 billion for 2010.

This gives an overall estimated two-year government revenues of 3.733 billion dinars.

Oil revenues are expected to top 1.556 billion dinars in 2010 up from an estimated 1.498 billion next year.

Non-oil revenues have been estimated at 337 million dinars and 340 million for 2009 and 2010 respectively.

Under the two-year budget draft plan, the overall expenditure is expected to top 4.162 billion dinars.

"The 2009-2010 budget harmonises with the main objectives endorsed in Bahrain's Economic 2030 Vision, which was unveiled last week," a Cabinet statement said.

Under the scheme, the government has vowed to make the improvement of people's living standards its main priority.