Shura Council committee discusses development with IMF mission

Manama, May 5 (BNA): The Shura Council’s Financial and Economic Affairs Committee, chaired by Deputy Chairman Redha Abdullah Faraj, received the International Monetary Fund (IMF) Article IV Consultation Mission, headed by John Bluedorn, Deputy Division Chief at the Middle East and Central Asia Regional Office for Analysis and Policy, as part of the mission’s annual visit to the Kingdom of Bahrain.

The meeting reviewed the continuous efforts undertaken by the legislative and executive authorities to advance economic development, establish a suitable environment for achieving sustainable development goals, implement strategies to address development challenges, ensure fiscal stability, diversify income sources, and transition towards financial sustainability.

The meeting also reviewed notable progress in macroeconomic indicators and the government's efforts to enhance financial transparency and improve the quality of economic data, contributing to greater confidence among financial and international institutions.

Discussions also covered the Shura Council’s legislative contributions to supporting the government’s financial and economic development efforts, including passing the legislation necessary for implementing economic reforms, reviewing the state’s final accounts and economic reports, and following up on the implementation of IMF recommendations.

The committee presented the delegation with an overview of the draft state budget law for 2025–2026, outlining its principles, foundations, and goals focused on economic diversification, social welfare, and fiscal sustainability. 

Discussions included the public debt ceiling, subsidy reform targeting eligible families, and the legislative amendments required to implement various financial reforms.

The committee emphasised the Shura Council’s commitment to supporting the government’s ongoing efforts to boost public revenue through a range of innovative financial programmes and initiatives, while reducing public expenditure by cutting operational costs in government entities, improving the efficiency of project budgets, and restructuring public institutions. 

The committee also highlighted the importance of ensuring efficient and fair government subsidies for eligible citizens and strengthening oversight of goods and services provided to companies.

Article IV of the IMF’s Articles of Agreement provides for bilateral discussions with member countries, typically held on an annual basis. An IMF team visits the member country, gathers economic and financial information, and holds meetings with officials to discuss economic developments and policies. Upon return, the team prepares a report for discussion by the Executive Board. 

The Managing Director, as Chair of the Board, then summarises the Executive Directors’ views and sends the summary to the country’s authorities.