The small non-OPEC oil producer, whose economy was hit by its worst unrest since the 1990s earlier this year, needs oil prices of around $100 per barrel to balance its budget.
US benchmark crude prices floated between $65 and $115 per barrel last year.
As a percent of gross domestic product, the deficit narrowed slightly to around 5.6 percent down from a 6.0 percent in 2009, according to Reuters calculations.
Analysts polled by Reuters expected a deficit of 0.7 percent of gross domestic product in 2010 and 1.4 percent in 2011.
Revenue reached 2.18 billion dinars, well above planned 1.46 billion, as income from crude and natural gas exports was nearly 65 percent higher than expected, the data showed. Hydrocarbons accounted for 85 percent of Bahrain’s budget revenue.
Bahrain’s expenditures reached 2.64 billion dinars, below budgeted 3.07 billion, the data showed.
In May, Bahrain’s parliament approved a 44 percent rise in government spending in 2011-2012 compared to the previous two-year period.
Robust oil prices are seen alleviating some of the spending pressure this year. However, Bahrain is the only Gulf state projected to see a budget deficit in 2011.
Bahrain’s central bank is expecting the economy to grow by three percent in 2011.
