Bahrain released a plan to fix its debt-burdened finances after securing a $10 billion aid pledge from its Gulf neighbours.
Tuesday 26, February 2019 BY KUDAKWASHE MUZORIWA
Bahrain's cabinet has approved a draft state budget for the next two years that projects a further reduction in its deficit to reach $1.63 billion by 2020 as part of a fiscal reform programme.
The draft forecast spending at DHD 3.25 billion ($8.62 billion) in 2019 and 3.28 billion dinars in 2020 as well as additional public investments of BHD 670 million in 2019, with an equal amount allocated for 2020.
In a statement, the cabinet projected a deficit of BHD 708 million in 2019 and BHD 613 million in 2020.
The Kingdom expects to eliminate budget deficit in 2022.
Additionally, the Government also reduced subsidies and raised taxes as well as fees as part of fiscal reforms – Bahrain introduced a value-added tax (VAT) last month.
Similarly, the cabinet also approved hikes in fees imposed on foreign labour licences under a job nationalisation programme to BHD 500 from BHD 200, reported Reuters.