With Bahrain continuing to face economic challenges and seek financial sustainability, the government provided 12 initiatives to the House of Representatives aimed at achieving surpluses in the public budget. These initiatives include amending spending and support, introducing new fees, and reviewing tax structures to ensure greater financial stability. However, the implementation of these reforms requires an accurate assessment of their impact on the economy and society, to ensure a balance between financial revenues and the welfare of citizens.- Economic repercussions: These initiatives aim to reduce the budget deficit and enhance non-oil revenues through adjustments such as the liberalization of fuel, electricity and water prices, imposing fees on carbon emissions, increasing selective taxes and value-added tax. This shift towards a varied revenue model aims to reduce dependence on oil and enhance financial sustainability. But these policies may negatively affect business confidence and competitiveness. The adjustments in the prices of commercial natural gas may increase the operating costs, which limits Bahrain’s attractiveness to investments. Likewise, additional taxes and infrastructure fees may increase burdens on small and medium -sized companies, which are the backbone of the Bahraini economy. Therefore, the implementation of these reforms gradually with clear organizational frameworks will be necessary to maintain the stability of the market.- Social repercussions: Increasing the cost of living is one of the most prominent concerns, despite the government’s emphasis on continuing citizens’ support in the areas of fuel, electricity and sanitation. However, indirect prices in prices may affect the budgets of families, especially those with limited income. On the other hand, the imposition of higher taxes on unhealthy foods may encourage healthy lifestyles, but it may not affect unparalleled groups with limited income groups. To ensure the justice of financial distribution, there must be mechanisms to protect the most vulnerable groups, while ensuring that no more economic gaps are not created within society.- Political repercussions: The House of Representatives plays a decisive role in assessing these policies to ensure that they do not negatively affect citizens. Discussions are focused on the impact of these fees and amendments to general confidence in economic policies. The regional competition is an additional challenge, as Bahrain should avoid imposing excess burdens that may push companies to move to other Gulf countries with more flexible tax policies. Achieving a balance between financial sustainability and social harmony will be necessary to maintain Bahrain’s reputation as an investment center and make reforms more popular. In sum. Its effectiveness in achieving a balance between economic flexibility, political stability and social luxury. While the executive authority has to take decisive steps towards financial sustainability, ensuring fair and transparent implementation will be it is very important in maintaining the confidence of the public.
