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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