Bahrain may need to borrow to finance its budget deficit as spending is expected to top revenue this year, Kuwait Finance House (KFIN) said.
The smallest Gulf Cooperation Council economy may see a deficit that is equal to 6.1 percent of its gross domestic product this year, as spending is expected to reach $9.2 billion, the bank said in an e-mailed report today, citing a Finance Ministry draft budget.
Bahrain based its fiscal budget on oil prices of $90 per barrel, $10 more than a year ago and more than double the price it used in 2010, the bank said. The kingdom will need an oil price of $103.80 to break even, the bank forecast.
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