MANAMA — Bahrain's Cabinet reiterated the kingdom's condemnation of the terrorist attack that took place in the French city of Nice last month, affirming its rejection of such terror crimes that contravene all religions, as well as human values and principles. The Bahraini Cabinet also expressed deepest condolences over the victims of the earthquake that rocked the Turkish governorate of Izmir, praying to Allah the Almighty to rest the souls of those killed in eternal peace and to bless the wounded with a speedy recovery. In the weekly session chaired remotely by Bahrain's Deputy Prime Minister Sheikh Mohammed bin Mubarak Al Khalifa on Monday, the Cabinet lauded the role of the country's banking sector in supporting the national economy, praising the rapid progress witnessed by the sector over the past 100 years, which has made Bahrain an important center for financial markets in the region and a favorable destination for mega international financial companies. The Cabinet welcomed Bahrain's ranking as the first Arab country in the Basel Anti-Money Laundering Index (Basel AML Index), noting that the accomplishment reflects the robust multiple frameworks adopted by the kingdom to combat money-laundering and financing of terrorism, the success of the government's strict measures to reinforce the principle of transparency and the strength of the relevant national legislation and laws. The Bahraini Cabinet has approved a draft budget for the fiscal year (FY) 2021-2022 and referred a draft law for its approval to the Council of Representatives, in accordance with legal and constitutional rules. The draft budget prioritizes social support for citizens in greatest need, while reducing expenditure to further improve resource management and allocation, as well as prioritizing objectives under the Fiscal Balance Program, which include increasing non-oil revenues and reducing expenditure. Focusing on economic recovery and creating new economic opportunities are of top priority during the upcoming period. The draft budget includes estimates of public revenues for FY2021-2022, which stands at 2.285 billion Bahraini dinars (SR20.28 billion approximately) for FY2021 and BHD 2.339 billion for FY2022, taking into consideration global oil price estimates of $45. Overall recurring expenditure amounts to 3.296 billion Bahraini dinars for FY2021 and 3.219 billion Bahraini dinars for FY2022. A total of 656 million Bahraini dinars has been identified for development projects for each fiscal year, in part taken from the Gulf Development Program. The draft budget aims to reduce the primary deficit, to about 568 million Bahraini dinars in FY2021 and 388 Bahraini dinars million in FY2022. Overall deficit estimates stand at 1.276 billion Bahraini dinars for FY2021 and 1.145 billion Bahraini dinars for FY2022. The draft budget law clearly states that the Fiscal Balance Program has achieved its 2019 objectives. However reduced oil revenues, driven by oil prices below estimates, and the unprecedented economic impact of COVID-19 on non-oil revenues, has increased the overall deficit. Yet the government has issued directives during 2020 to reduce administrative expenditures in line ministries by 30 percent. The Cabinet also discussed the norms and criteria related to the disbursement of financial support to low-income citizens, through reviewing a memorandum submitted in this regard by the Minister of Labor and Social Development.
