Bahrain puts economic recovery ahead of boosting budget revenue

Bahrain puts economic recovery ahead of boosting budget revenue

Bahrain could extend the duration of support measures to help businesses cope with the impact of the coronavirus after deploying the Gulf region's biggest stimulus relative to economic output.

Before following some of its neighbours and exploring raising taxes to boost revenue, the focus is now on ensuring that a projected recovery gathers pace next year, Finance Minister Sheikh Salman bin Khalifa al Khalifa said in an interview.

The government will "do what is necessary to ensure a positive path“ while "observing very closely“ what countries including Saudi Arabia and Oman are doing to bolster income, he said.

"We're also keeping one eye on the economy, and looking at the economic impact or potential for economic impact for any new revenue-boosting measures,“ Sheikh Salman said. "We really want to see the recovery take hold before we take any additional steps in that regard, that's our priority.“

Despite a $10bn bailout package pledged by its wealthier neighbours in 2018, Bahrain's public finances have been under strain from the twin shock of the pandemic and lower oil prices. The kingdom has responded to the health emergency by rolling out a stimulus package estimated by S&P Global Ratings at about 32 per cent of gross domestic