Manama: Dec. 4 – (BNA)– Several specialists urged for re-consideration of subsidies provided by the Government to Bahraini community by re-directing it in order to ensure that these subsidies reach the intended Bahraini citizens directly.

This was voiced by several specialists during (Opinions and Dimensions) television talk show recently who cited various forms of subsidies applicable in many countries around the globe, including the form of subsidies applicable in Bahrain since the past century which is the form of subsidies to essential commodities. Another form found feasible by studies is the direct form of cash bursary in the hands of eligible citizens or in the form of cash remittance. Financial support is essential to the community in order to achieve social and economic equilibrium.

Actually, TV programme show focused its discussion on Government subsidies to essential commodities such as foodstuffs, diesel, etc.

Subsidies to oil products constitute a burden to countries throughout the world and undermine the competitiveness of the oil refining industry because this sector usually achieves only a rather low profit margin. The programme guest speakers discussed the impact of current policy of subsidies, including the bane of unchecked smuggling of essential commodities and foodstuffs to abroad for the purpose of profiting from the price difference locally compared with prices in the destination country which brings in fast but illegal profits to smugglers.

The Bahrain TV show presented remarkable statistics of government subsidies from the past six years. The total amount of government subsidy on wheat flour, mutton, poultry, electricity and water, and local oil and gas sales reached BD 823 million in 2007, BD 1,126 million in 2012 and may reach up BD 1,378 million in 2014.

Government subsidies on oil products between 2007 and 2012 reached BD 149 million. It reached BD 288 million by the end of last year (2012). Meanwhile, preliminary statistics indicate that the total amount of subsidies to these products reached BD 213 million by September this year.

Also, the TV programme indicated that the largest consumer sector in Bahrain in 2012 was diesel. Meanwhile the construction and land transportation sector was 77% with variable lesser percentages in other sectors, for instance the maritime sector 13%, the fisheries sector 7% and the Government sector 3%.

The Ministry of Finance Undersecretary for Economic Affairs, Yusuf Humood, said that expatriate-residents, tourists, large companies and commercial establishments in Bahrain partake in sharing the benefit of government subsidies and this hampers it reaching eligible Bahraini citizens. (IY)

I.Y

BNA 1032 GMT 2013/12/04