Bahrain, which spent over $2.78 billion on subsidies a year, is planning to re-channelize government subsidies to benefit low-income citizens.
Human Rights and Social Development Ministry has teamed up with the World Bank in conducting a study on redirecting subsidies to benefit needy households solely. The issue is considered top priority, featuring on the Government’s work plan for coming years.
Concerned official authorities are also working towards implementing viable alternatives for government-subsidies to be optimized.
According to update figures, the overall Government-funded direct and indirect subsidies exceed BD1 billion per annum. The massive sums include subsidies allocated for oil and gas sales and food staples.
The subsidies also benefit the Social Insurance Fund, the Electricity and Water Authority, the Royal Charity Organisation, in addition to educational establishments, including Bahrain University, Bahrain Polytechnic, Bahrain Teachers’ College and the Supreme Vocational Training Council. The Government, chaired by His Royal Highness Prime Minister Prince Khalifa bin Salman Al-Khalifa, pumps up to BD58 million annually to subsidize housing programmes (rent allowances and instalment reduction), in addition to other housing projects.
The drive reflects the Government’s efforts to ensure decent living standards for citizens and protect their households against the detrimental repercussions of global price volatility and fluctuations. A British survey ranked Bahrain fifth cheapest gasoline-selling country in the world for gasoline.