Adieu! Subsidy

Manama

It’s now official. The meat subsidy is not here to stay. A clear date has not yet been fixed to six it. But, the government is determined to throw it out.

This became evident when Central Informatics Organisation (CIO) was directed yesterday to open online registration for citizens.

The online registration of citizens wishing to benefit from the cash compensation would start from September 15.

Deputy Premier and Chairman of Ministerial Committee for Economic Affairs and Rationalising Expenditure Shaikh Khalid bin Abdulla Al Khalifa issued a directive to this effect yesterday. 

Shaikh Khalid also ordered the Finance Ministry to start crediting the compensatory sums to the beneficiaries’ account effective October.

Shaikh Khalid maintained the move to phase out meat subsidy was in line with the directives of Prime Minister HRH Prince Khalifa bin Salman Al Khalifa. 

The latest move is also in line with the agreement reached between the government and the parliamentary committee.

Shaikh Khalid in his statement said the agreement to scrap the meat subsidy was reached during a “recent meeting”, without specifying any date.

Cash reimbursement received ‘go ahead’ in the absence of other alternatives including ration card submission before end of September, Shaikh Khalid said.

The pre-emptive move enables Social Development Ministry to prepare a complete database of the beneficiaries, Shaikh Khalid said.

The move, he reiterated, would also ensure Finance Ministry’s readiness to reimburse cash payment on a quarterly basis effective October.

Shaikh Khalid explained, the government decided to scrap subsidy only after ensuring protection of consumer interest with the advent of free competition.

The decision aims to protect public money, benefit the citizens and enhance government revenues restricted now by several challenges including oil price drop.

It was also revealed that the burden on government on account of food subsidies increased by 242 per cent during the 7-year period between 2007 and 2014.

In terms of money, it translated to a whopping BD57.4 million by end 2014 from a negligible sum of BD16.8 million.

The meat subsidy alone, for the same period, left a deep hole in the government purse as it peaked to 363 per cent or an astronomical sum of BD46 million.