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Bahrain’s New Budget Plan: No VAT Increase, Higher Retirement Allowance

Bahrain’s government and legislative leaders met to discuss the state budget for 2025-2026. The meeting, chaired by top officials from both branches, focused on economic growth and citizen welfare. A key takeaway was that the budget prioritizes citizens’ well-being, ensuring financial sustainability and better public services.

During the meeting, Ahmed bin Salman Al-Musallam, Speaker of the Council of Representatives, emphasized the importance of fulfilling royal directives. King Hamad bin Isa Al Khalifa had instructed the government to speed up housing projects, aiming to provide 50,000 new homes. The budget also focuses on strengthening the education and health sectors, as they are crucial for national progress.

Ali bin Saleh Al-Saleh, Chairman of the Shura Council, highlighted the strong cooperation between the executive and legislative branches. He stressed that these discussions reflect a commitment to national responsibility. He also noted that the budget prioritizes citizens’ well-being, ensuring that financial policies align with economic stability and growth.

Finance Minister Shaikh Salman bin Khalifa Al Khalifa expressed gratitude for the leadership’s vision. He reaffirmed the government’s commitment to implementing the budget’s objectives efficiently. He also confirmed that the government would not increase VAT. Additionally, retirement allowances would see an increase, offering more financial support to retirees.

The meeting included discussions on various initiatives, including housing, healthcare, and education reforms. Officials agreed that these sectors are vital for long-term national development. The government aims to accelerate project execution to meet public needs effectively. Strong coordination between the executive and legislative branches will help achieve these goals.

Another focus of the budget is financial stability. Policymakers want to ensure that economic policies create job opportunities and support businesses. By investing in key sectors, the government hopes to sustain growth and improve living standards. Officials also stressed that economic reforms should directly benefit citizens.

As Bahrain moves forward, the leadership remains committed to national prosperity. Through cooperation and strategic planning, the government ensures that the budget prioritizes citizens’ well-being while fostering economic progress.

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