On September 26, 2023, King Hamad bin Isa Al Khalifa issued a decree-law raising the public debt ceiling once again to reach 16 billion Bahraini dinars ($42.5 billion US dollars).

Based on financial analysis, the government in Bahrain has provided scraps to the country through meager bonuses approved by the MPs and Shura Council members in the meetings of the general budget draft.

While the government of Bahrain announced GDP growth of 6.9% in the second quarter of this year, it noted a decline in oil sector growth by 2.2%. So how did the sector's growth decline as oil prices doubled?

The Government could have remained silent and issued no statement on the financial savings made by the state treasury with the increase of oil prices, instead of declaring false figures.

Bahrain expects a significantly narrower budget deficit for the first half of 2022 due to high oil prices, Minister of Finance and National Economy Salman bin Khalifa Al-Khalifa said on Monday.

Opposition leader Ibrahim Sharif wondered why public debt is rising despite record high oil prices.

Oil prices increased significantly last year, compared to what the government adopted in the state budget, which raises the same questions repeated annually about the fate of the amounts collected as a result of the price increase.

In Bahrain, additional data and news indicate that the financial crisis has intensified as the government has asked a US company to review the fiscal balance program, the main plan for fiscal management, supported by three Gulf allies.

Countries of the energy-rich Gulf are expected to accumulate $490 billion in deficits by 2023 due to the double hit of low oil prices and the coronavirus slowdown, Standard and Poors said in a report.

Gulf bourse markets rebounded on Tuesday, tracking the impact of global equities, supported by the increasing oil prices due to record cuts in supplies and increase on oil demands.

Oil prices tumbled more than 2% on Wednesday after a report that U.S. President Donald Trump weighed easing sanctions on Iran, which could boost global crude supply at a time of lingering worries about global energy demand.