Cabinet Approves 20% Cut in Administrative Spending Across All Ministries

The government has announced a series of decisions approved by the Cabinet aimed at improving public services, supporting citizens, and enhancing state revenues. Key decisions include:

Reducing Administrative Expenses: All government entities will cut administrative costs by 20% while maintaining service quality. The Minister of Finance and National Economy will oversee implementation.

Increasing State Company Contributions: Government-owned companies will contribute more to the state budget.

New Corporate Revenue Law: A law proposing a 10% tax on local companies with annual revenues over BD 1 million or net profits above BD 200,000 will be referred to the legislative authority. The measure aims to diversify income sources and is expected to take effect in 2027.

Selective Tax on Soft Drinks: A law to increase revenues from soft drinks will be implemented following agreements with the legislative authority.

Better Use of Investment Lands: Undeveloped lands with full infrastructure services will be subject to a monthly fee of BD 0.100 per square meter, starting January 2027.

New Sanitation Service Fees: A 20% charge on water consumption will apply for sewage services, excluding citizens’ first homes, effective January 2026.

Review of Foreign Work Fees: Fees for employing expatriates will be reviewed to support Bahraini employment priorities, effective January 2026.

Natural Gas Pricing for Companies: Gas prices for factories and companies will be adjusted to reflect actual consumption costs, starting January 2026.

Fuel Pricing Mechanisms: New mechanisms to determine fuel prices will be developed and implemented immediately.

Electricity and Water Tariffs: Tariffs for non-subsidized foreigners and commercial entities will be adjusted. Citizens’ first homes will retain fixed rates for the first two consumption brackets, with special provisions for extended families, effective January 2026.

The Cabinet has assigned relevant ministers to take the necessary steps to implement these measures.