Expats concerned over subsidy cut plan in Bahrain

Expatriates in Bahrain have expressed concern about a proposal to cut government subsidies for foreigners and private sector enterprises, a media report said on Saturday.

"In Bahrain, the majority of expatriates fall into the middle to lower income bracket, so it doesn't make sense to target expatriates," Gulf Daily News quoted Bahrain Keraleeya Samajam president Varghese Karakka as saying.

He warned that many expats could decide to leave Bahrain if the proposal is accepted and implemented. He said the government would have to ensure that they receive better pay to offset higher costs of living.

Bahrain subsidises essentials like meat, flour, gas, petrol, diesel, electricity and water, but the impact of lower crude oil prices has been hurting Bahrain's economy as oil continues to be its most exported product accounting for more than 10 percent of its gross domestic product (GDP).

Bahrain raised its debt ceiling from 5 billion Bahraini dinars ($13.2 billion) to 7 billion Bahraini dinars in November last year, and plans to increase borrowing even further -- and expects to rack up debts of more than 9 billion Bahraini dinars by 2020, according to the report.

Over 400,000 Indians are either living or working in Bahrain, which is considered the freest economy in the Middle East and North Africa region.