Bahrain is looking to downsize the number of government departments by merging some ministries.
King Hamad, the country’s Prime Minister Prince Khalifa, and the Crown Prince, Prince Salman, all met in Manama to discuss ways of reduce public expenditure, according to Gulf Daily News. One way that's actively being considered by the country's leaders is to merge some ministries, thereby reducing the spend required on administration.
The kingdom has already taken steps to cut public spending by scrapping meat subsidies, which come into force on October 1 next.
Like other oil exporting Gulf states, Bahrain has for many years subsidised goods and services such as meat, fuel, electricity and water, keeping prices ultra-low in an effort to buy social peace.
Since last year the subsidies have become increasingly difficult for governments to afford as oil prices have plunged, slashing export revenues. Bahrain, with much smaller oil and financial reserves than its Gulf neighbours, has been particularly hard hit.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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