Crown Prince Accepts Government Task Forces' Recommendations to Reduce Government Expenditure by 30%

Dec 09, 2015, 13:34 ET from Bahrain Economic Development Board

MANAMA, Bahrain, December 9, 2015 /PRNewswire/ --

As part of the Kingdom of Bahrain's recently announced programme of economic and fiscal reform, His Royal Highness the Crown Prince has chaired a meeting of the Government Executive Committee, during which the final report of the six government task forces, responsible for reducing government expenditure, was accepted. The report includes a series of short-term and medium-term measures to reduce government expenditure by 30% and improve efficiency across entities.

The Kingdom of Bahrain is implementing a comprehensive programme of structural economic and fiscal reforms to further strengthen its long-term development. The programme is underpinned by three pillars: streamlining government expenditure; redistributing government subsidies; and a series of economic reforms and infrastructure projects worth more than $32bn to increase investment and growth.  

The programme includes detailed reviews of how government's administrative spending can be reduced and redirected to areas that deliver increased economic returns. Work in this area has already led to a reduction in the number of government ministries and the merging of ten government entities.

The Crown Prince noted that the target to reduce expenditure by 30% demonstrates the government's commitment to a sustainable fiscal position. Over the past two months the government task forces have conducted in-depth spending review meetings and site visits to assess government efficiency.

The Crown Prince reiterated that fiscal reform efforts must start from within government and that the implementation of the recommendations will modernise administrative procedures across government.

NOTES TO EDITORS

Spending Review Task Forces 

  • In October 2015, the Government of Bahrain established 6 specialist government task forces to review and identify areas of government expenditure that could be reduced, as well as the redistribution of spending to areas that deliver high economic returns. The recommendations were presented within the agreed time period and have been accepted by the government.
  • The areas of spending assessed include:
    1. Maintenance of government buildings
    2. Government travel expenses and transportation
    3. Government property rental costs
    4. Government advertisements and administration
    5. Government IT expenditure
    6. Efficient use of medical equipment

Reduced number of government ministries 

  • The government has consolidated the number of government ministries down from 23 to 16 to more efficiently and effectively serve the citizens of Bahrain.

Merging of government entities 

  • In October 2015, 10 government entities were merged to streamline services and reduce government expenditure. The merged entities include:
    1. The Bahrain Exhibition and Convention Authority with the Ministry of Industry, Commerce and Tourism
    2. The National Health Regulatory Authority with the Supreme Health Council
    3. The Supreme Council for Vocational Training with the Labour Fund (Tamkeen)
    4. The General Organisation for Youth and Sports with the Ministry of Youth and Sports
    5. The eGovernment Authority with the Central Information Organisation

SOURCE Bahrain Economic Development Board