CAIRO (Reuters) – The Bahraini government will present a bill in parliament in the next few months to allow the Future Generations reserve fund to take higher deductions from oil sales, the state news agency cited Finance and Economy Minister Sheikh Salman bin Khalifa al-Khalifa as saying.
The deductions will help to replace money withdrawn from the fund to support the general budget as part of efforts to tackle the coronavirus outbreak, the minister said.
The International Monetary Fund said this month that Bahrain’s economic recovery from the COVID-19 pandemic will be gradual, with growth projected at 3.3% this year after a 5.4% contraction in 2020.
The tiny Gulf state has been battered by the twin shocks of the coronavirus crisis and lower oil prices, which pushed its overall fiscal deficit to 18.2% of gross domestic product last year from a 9% shortfall in 2019, the Fund said.
Reporting by Ahmed Tolba, Writing by Saeed Azhar; Editing by Kevin Liffey