The Ministry of Finance and National Economy in Bahrain has addressed concerns regarding withdrawals made from the Unemployment Insurance Account to fund government initiatives. Despite these withdrawals, the ministry assures that the account remains sustainable and able to fulfill its obligations to unemployed beneficiaries. These withdrawals were conducted legally through a decree in accordance with the Unemployment Insurance Law, with approval from the General Organisation for Social Insurance’s Board of Directors. The ministry emphasized that withdrawals were only made when there were surpluses in the account, ensuring its sustainability.
The ministry provided insight into the financial status of the Unemployment Insurance Account, citing figures from the audited financial statements for 2022. In that year, expenses for benefits amounted to BD30.6 million, while revenues reached BD82.2 million, resulting in a surplus of over BD50 million. Such financial stability indicates that the withdrawals made from the account did not impact its ability to support unemployed individuals in the country. The ministry reiterated that the account’s sustainability remains intact despite the withdrawals for government programmes.
The purposes for which the withdrawals were utilized were also clarified by the ministry. These included funding optional retirement programmes, supporting Bahraini workers’ wages during the COVID-19 pandemic in 2020 and 2021, and financing programs aimed at integrating Bahrainis into the labor market. These programs, implemented by the Labour Fund “Tamkeen,” aim to provide employment, training, and wage support to Bahraini citizens. The ministry emphasized the significance of these programs in enhancing the competitiveness of Bahrainis in the labor market.
Furthermore, the ministry highlighted the role of the programs funded by the Unemployment Insurance Account in stimulating the economy. By developing entrepreneurship, activities, and commercial businesses, these programs create new job opportunities for citizens, aligning with the account’s objective. This approach not only supports unemployed individuals but also contributes to the overall competitiveness of Bahrainis in the labor market. The ministry emphasized the importance of these programs in making Bahrainis the preferred choice for employment.
In conclusion, the Ministry of Finance and National Economy in Bahrain has assured that withdrawals made from the Unemployment Insurance Account to finance government programs have not impacted the account’s sustainability. By utilizing surpluses in the account legally, the ministry has supported various initiatives aimed at enhancing the competitiveness of Bahrainis in the labor market. These programs not only provide support to unemployed individuals but also stimulate the economy by creating new opportunities for citizens. The ministry’s transparency regarding the financial status of the account and the purposes of withdrawals highlights its commitment to supporting Bahraini citizens during challenging times such as the COVID-19 pandemic.
