Bahrain Mirror (Exclusive): According to the report of the Financial and Administrative Oversight Bureau for the years 2021 and 2022, Bahrain's public debt and interest rates have reached catastrophic numbers. The report indicates that the government has turned Bahrain into a sick country addicted to debt and aid, and that all the economic plans announced by the authorities have failed miserably after it became clear they did not succeed in the investment of two significant opportunities, the first being the end of the Coronavirus pandemic crisis, and the second being the considerable rise in oil prices.
The facts stated by the Oversight Bureau, which only touches the tip of the iceberg of corruption in Bahrain, are as follows:
The real debt of the country amounted to 19 billion dinars, as the government has crossed the public debt ceiling (15 billion dinars) set by the law.
As of December 31, 2021, Bahrain's public debt amounted to about 17 billion dinars, while the Bureau counted another two billion dinars as debts directly borrowed by government agencies and companies under special legislation, bringing the total public debt listed and unlisted in the records of the Ministry of Finance to about 19 billion dinars.
Loan interests also increased in 2021 by 5%, amounting to about 698 million dinars, compared to about 665 million dinars in 2020.
The state spends less on public projects, as project expenditures decreased from 220 million dinars in 2020 to 200 million dinars in 2021, i.e. a 9% decrease.
On the other hand, oil revenues increased by a staggering 45%. After oil revenues in 2020 amounted to one billion and 233 million dinars, in 2021 they reached one billion and 783 million dinars.
Despite all this, the state continued to borrow and not faithfully implement the budget allocated for projects, and relied on Gulf aid to implement a number of projects for street construction and some housing projects.
The huge rise in oil revenues did not show any positive effect, as the state did not stop borrowing, the state did not implement specific projects that make a difference in the country's economy, and the government continued to rely on Gulf aid, even expecting more.
Analysts believe that the bulk of oil revenues go directly into the pockets of the ruling family, and that the family's share is now inflated and destroys every possible hope for reforming the economic situation.
The state spends a great deal of its money on huge projects connected to the sons of the ruling family, mainly the Crown Prince's private projects such as McLaren among others, and the projects of Nasser bin Hamad, whose hobbies cost the treasury millions. Meanwhile, the state completely neglects to support the education and health sectors, which are in very poor condition.
The country's finances have changed for the worse in light of the state being directly run by the King and his sons. Bahrain has fallen at the end of the line of Gulf countries, as an addicted country that borrows on a monthly basis by issuing financial instruments, and by begging for aid from the Gulf states. Likewise, the authorities in Bahrain have become addicted to suppressing and torturing its citizens, stripping them of any hope for a bright future.