Several key government bodies – including the Defence, Interior and Education ministries – exceeded their approved expenditure limits during 2023, according to a report reviewed by the Shura Council’s financial and economic affairs committee.
The committee’s report examined the 2023 unified closing financial statement, the state budget performance report and the transfer statements between ministries and government entities – all prepared by the Finance and National Economy Ministry.
The statement and related documents are set for debate during the Shura Council’s weekly session on Sunday.
Committee chairman Khalid Al Maskati said the review is part of the chamber’s constitutional and legislative oversight role, ensuring transparency and accountability in the management of public finances.
The report noted that while the non-oil sector continued to show steady growth – expanding by three per cent compared with 2022 – the overall fiscal deficit widened sharply, rising by 317pc to nearly BD774 million, up from BD186m the previous year.
This increase was attributed to higher public spending despite an improvement in oil and non-oil revenues.
“This level of fiscal imbalance requires urgent corrective measures,” said Mr Al Maskati.
“The government must adopt stricter controls on public expenditure and review its debt management strategy to safeguard financial sustainability.”
Public debt levels rose by 7pc in 2023, reaching BD17.9 billion compared with BD16.7bn in 2022.
The report also expressed concern over the underutilisation of funds allocated for public projects, noting that unspent amounts are often rolled over into subsequent years rather than being redirected to other priority areas.
The committee listed several ministries and government entities that exceeded their recurrent budget allocations in 2023. These include:
Defence Ministry (+BD45.5m, 9pc above approved allocation)
Interior Ministry (+BD8.3m, 2pc)
Education Ministry (+BD20.5m, 8pc)
Health Ministry (+BD11.8m, 33pc)
King Hamad University Hospital (+BD5.1m, 14pc)
Mohammed Bin Khalifa Cardiac Centre (+BD5.2m, 21pc)
Bahrain Oncology Centre (+BD1.6m, 5pc)
Additionally, transfer budgets – covering attached and independent government entities – rose by BD191m, reaching BD1.86bn, an 11pc increase compared with approved allocations.
The committee noted that total overspending reached BD289.5m, up from BD234.5m in 2022.
It urged ministries and entities to comply with the Public Budget Law which prohibits expenditure beyond approved appropriations unless authorised by law.
The panel also highlighted recurring shortcomings in the financial statements, including the absence of a full balance sheet and cash flow statement, as required by the Budget Law, and urged the Finance Ministry to include these in future reports for greater transparency.
It further noted that the National Audit Office limits its review to revenues and expenditures, excluding major supplementary accounts such as liabilities, accrued expenses and public debt – amounting to hundreds of millions of dinars – which the committee said should be fully audited.
The committee recommended approving the 2023 closing financial statement, while urging the government to adopt the listed recommendations to enhance fiscal performance, strengthen financial governance and ensure greater accountability in future budgets.
Parliament has annually rejected the statements citing mismanagement.
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