His Majesty King Hamad has ratified and issued a law approving Bahrain’s national state budget for 2025-2026.
This followed the Shura Council voting unanimously to back the budget in an urgent extraordinary session earlier in the day. Parliament voted to approve the budget at its session on Tuesday.
The budget was finalised within a record 72 hours of its referral by the Cabinet.
His Majesty also ratified and issued a law amending certain provisions of the decree law on the issuance of development bonds, following its approval by the Shura Council and Parliament.
The total spending over the two years has been set at BD8.916 billion, with BD4.379bn allocated for 2025 and BD4.536bn for 2026.
The government anticipates BD6.383bn in revenues – BD2.924bn in 2025 and BD3.459bn in 2026.
Speaking during the session, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa stressed the close co-operation between the executive and legislative authorities in formulating the budget.
“The new budget contains significant deficits, but we are working hand in hand with both councils to develop strategies to reduce it while ensuring continued economic growth,” he said.
“Since the launch of the Fiscal Balance Programme, we have successfully maintained a balanced approach that supports economic expansion.”
He highlighted the success of Bahrain’s fiscal policies, pointing out that the country had transformed a primary deficit of more than BD1bn in 2018 into a primary surplus over the last three years (2022, 2023 and 2024).
However, he acknowledged the burden of public debt interest payments, stressing that the government is focused on increasing revenue through sustainable solutions that do not negatively impact citizens.
“With the right policies in place, we will continue to achieve primary surpluses, ultimately leading to comprehensive fiscal surpluses,” he added.
Shaikh Salman reaffirmed that investment in the healthcare sector remains a top priority, given the country’s highly skilled workforce.
He commended Bahrain’s medical professionals for their expertise and efficiency, citing the sickle cell disease treatment team led by Shura Council services committee chairwoman Dr Jamila Al Salman as an example of excellence in patient care.
“Our healthcare professionals are among the best in the world, and we have taken steps to streamline procedures to ensure they can perform at the highest level,” he said.
“The same approach applies across other sectors, including law and various specialised fields.”
Shaikh Salman said one of the government’s key priorities is to improve the standard of living for citizens.
“This involves creating new job opportunities, strengthening purchasing power and protecting low-income groups,” he added. “The budget also focuses on developing infrastructure and enacting legislation to support new graduates, small and medium enterprises (SMEs) and entrepreneurship.
“We want our graduates to create job opportunities rather than rely solely on government employment. This requires policies that empower young Bahrainis to drive innovation and establish successful businesses.
“Programmes under Tamkeen and the Labour Ministry play a vital role in supporting start-ups and developing Bahrain’s private sector, ensuring that businesses thrive in a dynamic and competitive environment.”
Shaikh Salman noted that government-owned enterprises and investments are being carefully evaluated to ensure optimal returns and economic sustainability.
Shaikh Salman led an eight-member ministerial team at the session.
Present was National Assembly and Parliament Speaker Ahmed Al Musallam, who was accompanied by Parliament financial and economic affairs committee chairman Ahmed Al Salloom and vice-chairman Mohammed Al Marafi.
The budget was referred to His Majesty for approval after the end of the session. Mr Al Musallam signed on the document, in the presence of Shura Council Chairman Ali Saleh Al Saleh, Shaikh Salman and Shura’s financial and economic affairs committee chairman Khalid Al Maskati.
mohammed@gdnmedia.bh