Lifting subsidies was a hasty decision : Bahrain MP

Manama : An MP accused the government of taking hasty decisions in regards to lifting subsidies of important commodities during the past few months.

While discussing MP Ahmed Qarata’s queries about the aftermath of gasoline subsidy removal, the MP said, “The study that the government conducted on increasing gasoline prices, in cooperation with the University of Bahrain, is only a three-sheet script. This is not a comprehensive study on such a vital matter.”

While speaking to Energy Minister Dr. Abdulhussain Mirza before the council, Qarata said, “The government says a total of BD125 million is saved from lifting subsidies (energy and meat). It says that this move comes to decrease the public debt. The interests of public debt alone exceeds BD256 million. That proves that the government didn’t study the matter of lifting subsidies, as the debt remains. Lifting subsidies can’t even cover the interests, leave alone the BD7 million debt. The government doesn’t have a clear vision in this regard.”

“The government is taking hasty decisions. Lifting gasoline subsidy will generally have a negative impact on citizens’ livelihoods. Goods prices will increase, transportation, services and much more, as everything directly depend on gasoline,” he added.

In reply to Qarata’s claims, the Minister said, “The revenues of the government, which are mostly oil-dependent, dropped by 70 pc within one year. The expenditures of the government, which include salaries and other expenses, can’t be reduced all at once. The government began reducing its own expenses by rationalising spending and merging ministries and authorities, in addition to the removal of some subsidies, as advised by international economic firms.”

“Other regional countries such as Kuwait raised the electricity fees on expats by 12 times. The rest of GCC countries increased gasoline prices. We considered many segments of citizens when subsidies were lifted including fishermen, local bakeries, electricity beneficiaries who own more than one unit, etc. Taking the decision to lift those subsidies was a necessity,” Dr. Mirza added.