Subsidy redirection benefits citizens

The recent decision to redirect subsidies has proven that commercial establishments were benefiting from the subsidised meat products and not the eligible beneficiaries (household), it has been revealed.

This was stated by Information Affairs and Shura Council and Parliament Affairs Minister Isa bin Abdulrahman Al Hammadi during the post-Cabinet press conference that was held at Gudaibiya Palace yesterday.

Confirming that the decision will remain in effect, the minister mentioned that citizens only benefitted from 20% of the subsidised meat products in the past, while the remaining 80% went to non-Bahrainis, hotels and restaurants, which mainly used them in commercial purposes.

“The main beneficiaries of decision to remove the meat subsidies are citizens,” the minister confirmed, adding that the direct fund compensation scheme to citizens is the best way to benefit them.

As reported earlier, the Government has decided, in consensus with the National Assembly (Shura Council and Parliament) to scrap meat subsidies, as part of the endeavours to cut government expenses by redirecting subsidies. It has been reported that BD67 million has been dedicated to support meat products in local markets during in 2014.

After several delays, the scheme came into effect on October 1. However, despite several calls from Parliamentarians to delay it once more, the government showed no intention to withdraw the decision.