Minister sees positive signs of subsidy cut

Manama

Terming the decision on subsidy cut as a right one, Information Minister Isa bin Abdulrahman Al Hammadi said it was going to benefit the Kingdom in the long run.

Speaking to DT News here yesterday, the Minister said that the new state budget for the years 2015-2016 would have a positive effect on Bahrain’s short-term and long-term fiscal positions. 

“The budget will promote the fiscal discipline within government and deliver even greater focus on the development of key sectors that drive economic growth,” he explained. When asked about how the government was going to redirect the benefits of subsidies to the Bahrainis only, Hammadi commented: “A Government-Parliament joint committee has been established to review all the best possible options in this regard. It is working on the matter very efficiently.”  “The committee is assessing a number of options regarding the redistribution of government subsidies.” 

Stating that the joint committee has been discussing a number of factors, including the future expenditure profiles of each subsidy, Hammadi remarked: “The joint committee has already agreed to take specific measures to ensure that Bahraini citizens get benefit from certain subsidies, including the electricity and water subsidies in their place of residence.”

He said that the government had been very clear throughout the budget process that it would consider the current economic milieu, and deliver fair and credible plans for future levels of public spending.

Hammadi added that the joint committee’s final recommendations would include bespoke recommendations for each subsidy, including whether a phased approach should be applied to the redistribution of certain subsidies.