Bahrain’s Cabinet has approved a number of immediate measures to cut expenditure, boost revenues, redirect subsidies, optimise the cost of public services and merge government agencies.

The austerity measures are expected to have an overall impact, saving a potentially massive BD386 million ($1.01 billion), said a report in the Gulf Daily News (GDN), our sister publication.

The move was unveiled as His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa chaired the weekly Cabinet meeting.

“The initiatives and programmes aim at enabling Bahrain to withstand financial challenges,” he said.

The session discussed a number of recommendations submitted by the ministerial committee for financial affairs and rationalisation of spending '“ a key panel chaired by Deputy Premier Shaikh Khalid bin Abdulla Al Khalifa.

On August 1, the government will start making direct cash compensation payments to citizens - thus replacing subsidised meat being sold in the market.

The aim of the new procedure is to ensure citizens are the sole beneficiaries of government funds.

Under the new measure, citizens will receive direct compensation payments through an electronic monetary transfer system. The Social Development Ministry will co-ordinate the cyber payment system with the Central Informatics Organisation and the e-Government Authority.

Each Bahraini family will be entitled to compensation payment, calculated on the basis of the age categories of their members. - TradeArabia News Service