Bahrain Embarks on Major Fiscal Reforms Amid Economic Challenges

Bahrain has initiated significant fiscal reforms, including hikes in fuel, electricity, and water prices, and increased dividends from state-owned companies. The nation, facing weak state finances, will also raise natural gas prices for businesses and cut government administrative expenses by 20%.

Bahrain has announced substantial fiscal reforms in a bid to strengthen its fragile economy. The measures include increased fuel prices as well as higher charges for electricity and water.

The government statement released on Monday highlighted additional steps, such as raising dividends from state-owned companies, which aim to bolster state revenues.

Despite the challenging economic landscape, the reforms will also see a 20% reduction in administrative government spending and adjustments in natural gas prices for businesses.

(With inputs from agencies.)