NEW HOPE
A panel to be formed to discuss issues related to subsidy
DT News Network
Manama
Information Affairs Minister Isa bin Abdulrahman Al-Hammadi said that the government was looking forward to implementing sustainable policy in the Kingdom instead of borrowing funds every year.
“Withdrawal of subsidies on meat and electricity is part of this policy,” he said while speaking to reporters on the sidelines of the weekly Cabinet meeting, chaired by Prime Minister HRH Prince Khalifa bin Salman Al Khalifa, here yesterday.
The Minister said that a committee would be formed to discuss the issues related to subsidy.
“Finance Committee and two other committees held a meeting related to subsidy on Sunday. The government spending would also be reviewed in order to bring balance in spending and revenues,” Al-Hammadi said.
According to the Minister, the withdrawal of subsidies was necessitated due to current financial situations, especially in the backdrop of fall in oil revenues as well as non-oil revenues.
“If we don’t start now, it will be harder later,” said the Minister, stressing the need for reducing expenses and increasing income.
Meanwhile, he said that a review would be made on balancing the cost of services provided to the commercial sectors. “The government would also focus on diversifying sources of income.”
The Information Affairs Minister also said that the government would review its decisions on subsidy on a regular basis in order to maintain competitiveness in the market, especially to ensure that Bahrain is a preferred place by expat workers as well as business establishments.
Commenting on the issues related to forming a proper channel to compensate the Bahraini citizens in the backdrop of withdrawal of subsidies, the Minister said that the procedures had not been finalised yet.
“There might be delay in implementing the plans due to technical issues. But the plan is underway. But we still have enough time since the subsidy withdrawal will come into effect in August,” added Al-Hammadi.
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