Dec. 29, Manama (BNA): Following a Cabinet meeting presided over by Crown Prince and Prime Minister Prince Salman bin Hamad Al Khalifa, the government today announced a package of Cabinet-approved measures to reduce government spending, generate new revenue, and safeguard important subsidies for citizens in a press conference held at Gudaibiya Palace.
يوافق مجلس وزراء البحرين على المبادرات المالية لتعزيز الاستقرار ودعم المواطنين
The Cabinet’s confirmation that water and energy rates for the first and second tariff bands for citizens’ primary residences, including those of extended families, will not change was a key component of the announcement. While price adjustments for other user categories would begin in January 2026, plans to restructure home utility support were postponed for additional research.
The actions build on the achievements made under Bahrain’s Fiscal Balance Program, which supported consistent economic growth by reducing recurring government spending as non-oil income more than doubled between 2018 and 2024. Over the last twenty years, Bahraini workers’ average earnings have more than quadrupled, the country’s GDP has grown fivefold from approximately USD 9 billion to USD 47 billion, and inflation has remained relatively low in comparison to major sophisticated economies.
In keeping with Bahrain’s Economic Vision 2030, the policies assist long-term fiscal sustainability, revenue diversification outside of hydrocarbons, and spending restraint while shielding people from pressure from rising living expenses.
Building on this development, the following important actions were announced today:
1. Cutting administrative costs by 20% for all government agencies while keeping Bahraini residents’ access to high-quality services. The Minister of Finance and National Economy was assigned by the مجلس الوزراء to take the appropriate action.
٢ - زيادة مساهمات الشركات المملوكة للحكومة في الميزانية العامة للمملكة.
3. referring a draft law to the Legislative Branch that, in accordance with agreements with the Legislative Branch, imposes a 10% tax on the profits of local businesses whose annual revenues exceed BHD 1 million or whose net annual profits exceed BHD 200,000. وأي مبلغ يُدفع بعد المقياس المرجعي البالغ 000 200 دينار صربي سيخضع للضريبة. وبهدف وضع مشروع القانون موضع التنفيذ في عام 2027، يعتزم الإجراء تشجيع تنويع مصادر الدخل ويعهد إلى وزير المالية والاقتصاد الوطني بمسؤولية اتخاذ الإجراءات المطلوبة.
4- زيادة الفرضية الانتقائية على المشروبات اللينة بإحالة مشروع قانون إلى الفرع التشريعي، رهناً بالتعاون مع الفرع التشريعي. The Minister of Finance and National Economy was assigned by the Cabinet to take the appropriate action.
5. In order to improve the use of undeveloped investment areas with current infrastructure services, a monthly fee of 100 fils per square meter will be implemented in January 2027. The Minister of Municipalities Affairs and Agriculture was assigned by the Cabinet to take the appropriate action.
٦ - وفي كانون الثاني/يناير ٢٠٢٦، ستنفذ تكاليف خدمات الصرف الصحي، باستثناء المساكن الرئيسية للمواطنين. وستحدد هذه الأسعار بنسبة 20 في المائة من رسوم استهلاك المياه. وقد كلف مجلس الوزراء وزير الأشغال باتخاذ الإجراءات المناسبة.
7. A study of healthcare costs and worker permits. وسيُعفى العمال المنزليون من التكاليف الجديدة التي ستُدخل تدريجياً على مدى أربع سنوات تبدأ في كانون الثاني/يناير 2026. وكلف مجلس الوزراء وزراء العمل والشؤون القانونية والصحة باتخاذ الإجراءات المناسبة في هذا الصدد.
8 - واعتبارا من كانون الثاني/يناير 2026، سيجري تدريجيا تعديل معدلات الغاز الطبيعي بالنسبة للأعمال التجارية والمصانع على مدى فترة أربع سنوات لتعكس التكلفة الحقيقية للاستخدام. The Minister of Oil and Environment was assigned by the Cabinet to take the appropriate action in this regard.
9 - وضع خطة لتسعير البنزين. The Minister of Oil and Environment was assigned by the Cabinet to take the appropriate action in this regard.
10. Taking into consideration extended families living in a single household, the Cabinet confirmed that water and energy rates for the first and second tariff bands for المواطنين‘ primary dwellings shall stay the same. The Cabinet also decided to modify the electricity and water consumption tariffs for other categories, with implementation slated for January 2026, and to delay any changes to the mechanisms of electricity and water subsidies for citizens’ primary residences until more research is done. The Minister of Social Development and the Minister of Electricity and Water Affairs were assigned to take the appropriate action in this regard.
11. Simplifying and improving the effectiveness of government processes that facilitate investment in order to draw in foreign capital and bolster the private sector’s participation.
