This presentation was made by Adnan Wahab ISSHAQ, ministry of Finance, Bahrain,at the 9th OECD MENA-SBO meeting held in Kuwait City on 12-13 October 2016

1. 1
October 2016
Public Finances
in the Kingdom of Bahrain

2. Background on Bahrain
2
2015
Total Population
1.3 million
~49% nationals
2015
Unemployment
3.4%
GDP per capita
~ US$27
thousand
Oil production
~200 thousand
barrels per day
Over 50% of the
national civil
workforce is within
the private sector

3. Background on Bahrain’s Economy
GDP 2000
Economic Diversification 2000-2014
3
GDP 2014

4. Background on Bahrain’s Economy
BD Millions
GDP by main sectors
Break-down of economy
4

5. Background on Bahrain’s Economy
BD Millions
Real GDP
Economic Growth
5
2015
Real GDP Growth
2.9%
Non-Hydrocarbon
Sector Growth
3.9%
Hydrocarbon
Sector Growth
-0.9%
4,000
6,000
8,000
10,000
12,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

6. 6
Fiscal Position
BD Millions
Revenues & Expenditures 2005-2015
Oil & Gas revenue
account to ~75%
of Government
Revenues
Fiscal measures have
been implemented
to gradually diminish
deficit starting 2016
Expenditures
account to ~30%
of GDP

7. •Implementation of strategic
initiatives while monitoring and
measuring performance
Time line
•Up to 2030
•Every 4 years
•2015 - 2018
•Every 2 years
•2015-2016
•Continuous
•Every 4 years
•2015 - 2018
Strategic plans for
government entities
State budget
Implementation &
Performance Monitoring
Government
Action Plan
Vision
•Identify the aspirations of
Bahrain until the year 2030 with
respect to the government,
society and the economy
•Translate vision into goals and
strategic initiatives at government
level
•Determine the strategic plans and
implementation priorities of all
government entities
•Develop plans and programs and
preparing the state budget in line
with strategic priorities
Purpose
7
Bahrain’s Government Planning Model
Economic Growth

8. Objectives Description
- Analyze expenditures & identify
levers to increase efficiency &
effectiveness
Control
Expenditure
Levels
Introduce New
Revenue
Streams
Maintain
Economic
Growth
1
2
5
- Identify additional revenue
- Analyze key sectors & take
measures to leverage investment
& growth
- Identify initiatives in key
emerging sectors
Recover Costs
of Government
Services
3
Re-direct
Subsidies
4
- Set fees of government services
gradually at cost levels
- Options in current systems &
procedures to enhance revenue
collection processes
- Re-direct government subsidies
to the most needy sectors of
society and economy
Fiscal Adjustments Plan & Implementation
6 Task-forces have been
formed (at ministerial level) to
reduce Operational
Expenditures: Savings
identified & implemented in
2016
Over 300 government fees &
tariffs have been amended
Energy tariffs have been
adjusted with gradual annual
increases
Food subsidies scheme has
been restructured to focus on
individuals as per criteria set
With the completion of the
first wave of measures, a
second wave have been
identified and execution has
started in Q3 2016
Implementation Summary

9. 9