Meat Allowance for High-Earners in Bahrain Under Scrutiny as Budget Faces Tough Choices

TDT | Manama

The Daily Tribune - www.newsofbahrain.com   

The upcoming 2025-2026 national budget faces a complex financial landscape, both domestically and internationally, according to MP Mohammed Al Ahmed, a member of the Financial and Economic Affairs Committee and its former chairman. The budget is expected to prioritize achieving financial equilibrium by the end of 2026, but this goal is complicated by the need to address citizens' living standards, particularly in light of rising costs.

Al Ahmed revealed that a group of MPs are advocating for the discontinuation of the meat allowance for high-income earners. He pointed out that the current budget allocates 60 million Bahraini dinars for meat subsidies, highlighting the urgent need to redirect these funds to low-income individuals to ensure they benefit from the upcoming budget, especially in these sensitive times.

Al Ahmed emphasised the need for careful consideration and extensive analysis to achieve a balance between achieving financial equilibrium and providing tangible improvements in citizens' living standards. He expressed confidence in the government's commitment to the agreements reached between the legislative and executive branches, noting that ministers are actively engaging in oversight within their respective ministries, reducing the pressure on MPs and leading to a decrease in the use of oversight tools within the National Assembly.

In an interview with our sister newspaper Alayam, Al Ahmed anticipated that the allocations for projects and direct support will remain at their previous levels in the upcoming budget. He acknowledged the difficulty for the government to significantly increase support allocations, advocating for a restructuring of current subsidies with a slight increase within budgetary constraints. He proposed directing these funds primarily towards low-income citizens.

Regarding the work of the Joint executive-legislature committee on restructuring subsidy system, Al Ahmed deemed the proposal to double the government's direct subsidy budget to 850 million dinars (from 450 million) as unrealistic and challenging. He emphasised that achieving even a single gain for a large segment of the population is a significant accomplishment.

"Since the beginning of the current legislative term, the Financial Committee has taken on the responsibility of translating the government's work programme and the MPs' aspirations to improve citizens' living standards, which was reflected in the 2023-2024 national budget. During my chairmanship of the committee in the first session, which saw the budget's approval, I can confidently say that we found significant government understanding regarding the importance of the living standard aspect, despite the financial challenges facing the Kingdom and the region," he said.

"We were able to achieve a significant accomplishment in collaboration with the executive branch, even if some consider it modest. However, as experienced individuals, we believe this achievement is substantial given the current circumstances. Unfortunately, the agreements reached between the two branches did not receive the media attention they deserved, and some MPs attempted to downplay these achievements due to their lack of understanding of past experiences and current conditions," he pointed out.

"We are talking about an increase in the cost of living allowance for 80% of retirees, exceeding the annual increase they had been deprived of, an increase in the cost of living allowance for employees, and the allocation of 200 million dinars to the 'Tamkeen' Labour Fund to launch serious programmes for employment, training, and supporting the promotion of Bahrainis in the private sector."

"We, as MPs, must understand the current circumstances. The government, in these circumstances, is keen on the financial situation and is trying to find a balanced and consensual formula between raising the standard of living and the need for the country's financial stability and addressing economic challenges."

Regarding the upcoming budget's goal of achieving financial equilibrium, Al Ahmed stated:

"The issue of financial equilibrium is a priority for both the National Assembly and the government, as it is a local, regional, and international commitment. According to the planned roadmap, the goal is to reach financial equilibrium by the end of 2026."

"Achieving improvements in living standards is possible within a specific scope and reasonable limits, and it heavily depends on certain variables, such as oil prices."