Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?

The paper argues that political economy factors, rather than oil wealth, shape the budgetary process and outcomes in Bahrain. Fiscal volatility and excessive current spending (in the form of wages, social welfare and subsidies) leading to unsustainable non-oil deficits are not fully derived from oil...

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Autores principales: El-Enbaby, Hoda, Selim, Hoda
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: Economic Research Forum 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/146990
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author El-Enbaby, Hoda
Selim, Hoda
author_browse El-Enbaby, Hoda
Selim, Hoda
author_facet El-Enbaby, Hoda
Selim, Hoda
author_sort El-Enbaby, Hoda
collection Repository of Agricultural Research Outputs (CGSpace)
description The paper argues that political economy factors, rather than oil wealth, shape the budgetary process and outcomes in Bahrain. Fiscal volatility and excessive current spending (in the form of wages, social welfare and subsidies) leading to unsustainable non-oil deficits are not fully derived from oil price volatility. Weak institutions including those underlying the budgetary process contributed to some fiscal laxity. They have allowed rulers to use current spending as a channel for the redistribution of oil rents and to secure political stability and allegiance to the regime in a turbulent socio-political environment. The budgetary process is undermined by the structure of the bicameral parliament and the absence of restrictions on the parliament to amend the budget weaken the position of the executive. In the general context of limited transparency and accountability, the government may also be exercising its discretionary powers over the budget execution but it would not be known.
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spelling CGSpace1469902024-10-25T08:05:23Z Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics? El-Enbaby, Hoda Selim, Hoda expenditure financial institutions fiscal policies oil budgets oils public expenditure prices exporters The paper argues that political economy factors, rather than oil wealth, shape the budgetary process and outcomes in Bahrain. Fiscal volatility and excessive current spending (in the form of wages, social welfare and subsidies) leading to unsustainable non-oil deficits are not fully derived from oil price volatility. Weak institutions including those underlying the budgetary process contributed to some fiscal laxity. They have allowed rulers to use current spending as a channel for the redistribution of oil rents and to secure political stability and allegiance to the regime in a turbulent socio-political environment. The budgetary process is undermined by the structure of the bicameral parliament and the absence of restrictions on the parliament to amend the budget weaken the position of the executive. In the general context of limited transparency and accountability, the government may also be exercising its discretionary powers over the budget execution but it would not be known. 2018-10-29 2024-06-21T09:10:13Z 2024-06-21T09:10:13Z Working Paper https://hdl.handle.net/10568/146990 en Open Access Economic Research Forum El-Enbaby, Hoda; and Selim, Hoda. 2018. Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics? Economic Research Forum Working Papers 1234. Giza, Egypt: Economic Research Forum. http://erf.org.eg/publications/fiscal-outcomes-in-bahrain-oil-price-volatility-fiscal-institutions-or-politics/
spellingShingle expenditure
financial institutions
fiscal policies
oil
budgets
oils
public expenditure
prices
exporters
El-Enbaby, Hoda
Selim, Hoda
Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title_full Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title_fullStr Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title_full_unstemmed Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title_short Fiscal outcomes in Bahrain: Oil price volatility, fiscal institutions or politics?
title_sort fiscal outcomes in bahrain oil price volatility fiscal institutions or politics
topic expenditure
financial institutions
fiscal policies
oil
budgets
oils
public expenditure
prices
exporters
url https://hdl.handle.net/10568/146990
work_keys_str_mv AT elenbabyhoda fiscaloutcomesinbahrainoilpricevolatilityfiscalinstitutionsorpolitics
AT selimhoda fiscaloutcomesinbahrainoilpricevolatilityfiscalinstitutionsorpolitics