Bahrain, 25 March, 2025 : Bahrain’s government and legislators have reached an eight-point agreement on the 2025-2026 national budget, maintaining VAT rates and increasing selective taxes on items like energy drinks and tobacco.
The deal was finalized during a high-level meeting led by Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa, alongside MPs and Shura Council members. Shaikh Salman praised the legislative authority’s cooperation in achieving national economic goals.
Key points include retaining pensioners’ cost-of-living allowances, allocating BD800 million for housing projects, and investing BD688 million in healthcare. Education will see curriculum updates and expanded services, while infrastructure projects will include new schools, road enhancements, and sewage network upgrades.
To boost employment, the budget targets 25,000 job opportunities per year, with 8,000 fresh graduates supported annually. The Labour Fund (Tamkeen) will assist 50,000 Bahrainis in training and financing.
Government agencies must cut operational costs by 5%, while low-income citizens will receive direct financial support in case of subsidy adjustments. Corporate tax on high-revenue companies, carbon emission fees, and urban development incentives will be introduced to strengthen financial sustainability.
The budget also prioritizes deficit reduction strategies to ensure fiscal stability while supporting economic growth and social welfare.
Source : www.zawya.com
