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FINANCIAL NEWS
Bahrain plans severity steps to cut its budget deficit
31 Jan 2016
(MENAFN) Bahrain intends severity steps in order to reduce its budget shortage in line with IMF recommendations, which could help the island kingdom sell its bonds when it returns to global markets this year.
Moreover, Bahrain will use the IMF’s assistance to plan economic changes as low crude prices make heavy stress on state finances, and it also offering valuable political cover for reforms.
Additionally, the kingdom predicted to come back to bond markets to support finance its budget deficit, which is estimated by the Global Monetary Fund at 15 percent.
Bahrain’s budget strategy for 2015 and 2016 viewed a deficit of almost USD 4.0bn, while austerity steps already taken involve removing domestic price subsidies for meat and gasoline.
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