Bahrain has introduced a 12-point action plan to strengthen the economy and ensure financial stability. The government aims to achieve a budget surplus and reduce the national deficit by 2026.
During a high-profile meeting, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa presented the draft budget for 2025-2026. The session took place at the National Assembly headquarters in Gudaibiya. Meanwhile, Parliament Speaker Ahmed Al Musallam led the parliamentary team, while Shura Council Chairman Ali Saleh Al Saleh led the Shura delegation.
Bahrain’s action plan focuses on economic growth, financial discipline, and sustainable policies. Moreover, it includes key changes to taxes, infrastructure fees, and healthcare funding. These measures will help improve public services and enhance living standards.
The 12-point action plan includes:
- Strengthening financial oversight to optimize government spending. Therefore, stricter policies will be enforced.
- Adjusting natural gas prices for businesses while maintaining stability for consumers. As a result, businesses will need to plan accordingly.
- Gradually liberalizing fuel, electricity, and water prices while keeping subsidies for citizens. Consequently, this transition will require careful management.
- Introducing carbon emission fees to encourage environmentally friendly practices. Additionally, businesses will need to comply with new regulations.
- Implementing corporate taxes to diversify government revenue streams. Furthermore, these taxes will support national development.
- Modifying VAT policies to increase national income. Hence, adjustments will ensure more balanced tax distribution.
- Expanding selective taxes on unhealthy food products. Similarly, raising awareness about health concerns will be essential.
- Raising tax rates on tobacco, soft drinks, and energy drinks. Thus, these changes will impact both businesses and consumers.
- Introducing infrastructure sustainability fees to support development projects. Moreover, these funds will maintain critical public services.
- Requiring mandatory health insurance and introducing a fee for expatriates. Consequently, healthcare accessibility will improve.
- Establishing wastewater fees for non-residential properties. In turn, this measure will enhance environmental sustainability.
- Launching revenue-generating projects and reducing debt servicing costs. Ultimately, this strategy will secure long-term economic growth.
Bahrain’s action plan will shape the country’s financial future. Therefore, Parliament Speaker Ahmed Al Musallam emphasized collaboration between the government and the legislature. He also thanked Crown Prince and Prime Minister His Royal Highness Prince Salman bin Hamad Al Khalifa for supporting these efforts.
Shura Council Chairman Ali Saleh Al Saleh highlighted the importance of balancing financial sustainability with citizens’ needs. Moreover, he stressed that economic policies must support growth while protecting social stability.
Parliament financial committee chairman MP Ahmed Al Salloom confirmed that discussions remain ongoing. Meanwhile, every proposal will undergo careful review before final approval. He assured that Bahrain’s action plan will address the BD3.8 billion deficit and create a BD25 million surplus by 2026.
He also revealed that joint meetings will continue every Sunday and Wednesday. Additionally, lawmakers must address key legislative changes before finalizing the budget. Taxation policies and wastewater fee regulations need updates to align with the new financial strategy.
Ministers, deputy speakers, and economic experts participated in the discussions. Indeed, Bahrain’s action plan is a step toward long-term financial stability and economic prosperity. The government remains committed to achieving sustainable growth and improving citizens’ quality of life.
