Worries over 50% fee cuts for retirees

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

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A plan to cut government fees and healthcare costs for retirees in half is raising worries about its impact on public funds.

The government warns that the plan, aimed at easing costs for pensioners with over 30 years of service, could put a heavy strain on the state’s budget and risk key services.

The draft law, now being considered by the Council of Representatives, proposes a 50 per cent reduction in government fees and healthcare expenses for retirees, which officials argue could harm public finances.

The government says current laws already provide wide-ranging support for older citizens. Discounts The Law on the Rights of the Elderly, for example, already gives retirees lower fees and discounts on goods and services through the Elderly Service Card.

This card offers pensioners a 50 per cent reduction on government fees and benefits from private companies.

However, the proposed law would go further, applying across-the-board cuts to all government services and compelling both private healthcare providers and public hospitals to lower healthcare costs for retirees by at least 50 per cent. In response, the government has raised several objections.

Constitutional rights It argues that forcing private businesses to lower their prices could violate constitutional rights, which allow businesses to set their own fees unless otherwise mandated by law.

The government also warns that such cuts would heavily impact the state’s ability to fund essential services, especially during economic hardship. It cautions that reducing all fees by 50 per cent could disrupt financial planning and long-term efforts to stabilise the economy.