Subsidies on Electricity to be Lifted in 2016 Gradually Over 4 Years
2015-09-21 - 11:28 p
Bahrain Mirror: Member of the minor committee assigned to review the redirection of subsidies and development of government revenues in the Bahraini Parliament, Ahmed Qarata, told the Al-Wasat newspaper that "the government aims at lifting subsidies on electricity for non-Bahrainis gradually within a 4-year plan that starts in 2016 and ends in 2019."
"Prices of electricity will remain the same for Bahrainis, even if he was breadwinner and owns more than one house, under the condition that the houses are used by his family and not rented," Al-Qarata added.
If the government implements this decision, it is expected that the lift of subsidies on electricity will include 248 thousand joint accounts, including industrial, commercial and investment beneficiaries, while 198 thousand accounts, which are the citizens domestic accounts, will not be affected by the lift.
According to the government, the largest percentage of government subsidies will be dedicated for providing electricity to Bahrainis and non-Bahrainis (house sector). The subsidies reached about 250 million BD annually during 2013 and 2014.
Bahrain has been suffering from a severe political crisis since 5 years ago that affected the economy. The economic situation in Bahrain has deteriorated after the drop in global oil prices which led to taking several measures, mainly raising the debt ceiling and lifting subsidies on meat that will be implemented starting from the onset of October, 2015.
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