Jump to ContentJump to Main Navigation
Institutions and Macroeconomic Policies in Resource-Rich Arab Economies$
Users without a subscription are not able to see the full content.

Kamiar Mohaddes, Jeffrey B. Nugent, and Hoda Selim

Print publication date: 2019

Print ISBN-13: 9780198822226

Published to Oxford Scholarship Online: July 2019

DOI: 10.1093/oso/9780198822226.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 07 April 2020

Fiscal Outcomes in Bahrain

Fiscal Outcomes in Bahrain

Oil Price Volatility, Fiscal Institutions, or Politics?

Chapter:
(p.329) 11 Fiscal Outcomes in Bahrain
Source:
Institutions and Macroeconomic Policies in Resource-Rich Arab Economies
Author(s):

Hoda El Enbaby

Hoda Selim

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198822226.003.0011

This chapter 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, have contributed to some fiscal laxity. These 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 sociopolitical environment. The budgetary process has been undermined by the structure of the bicameral parliament, while the absence of restrictions on parliament to amend the budget weakens 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 this cannot be known.

Keywords:   Bahrain, political economy, budgetary process, institutions, oil rents, oil deficits

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .