Economic
Bahrain introduces new fiscal and tax reforms to address debt and public spending
Bahrain’s government rolls out fiscal consolidation measures including higher corporate taxes, increased fuel and utilities tariffs for businesses, and greater dividend extraction from state‑owned ent
Bahrain has announced a package of fiscal reforms designed to reduce public expenditure, generate new revenue streams, and stabilize its fiscal position amid rising government debt. Measures include the introduction of a 10 percent corporate income tax on companies with revenues above 1 million Bahraini dinars, higher fuel and natural gas prices for the business sector, elevated electricity and water tariffs for certain categories, and increased transfers of profits from state‑owned enterprises to the general treasury. The government plans a 20 percent reduction in administrative spending and aims to align these reforms with Economic Vision 2030 to diversify revenue beyond oil and ensure long‑term fiscal sustainability. By 2026 public debt is projected at historic highs, and the reforms are intended both to slow the debt trajectory and strengthen resilience against external shocks.
- Status
- active
- Location
- Bahrain
- Date added
- 2026-03-25 09:31 UTC
- Last updated
- 2026-03-25 09:31 UTC
- Source
- http://dt.bh
- Connected threats
-
- Not Available