Fiscal Policy in Bahrain and Its Impact to State’s Economic Performance

Abstract

Kingdom of Bahrain becomes one of Middle East State list that is worth considering. In 2020, a monarchy state that relies on its economy through hydrocarbons facing economic correction due to COVID-19 pandemic, despite it grew well years before. Bahrain’s GDP with expenditure approach dominates by exports of goods and services. From 2016-2020 Bahrain experienced budget deficit, but the deficit decreased in every year. The purpose of this research is to explain Bahrain’s fiscal policy and its effect to this state’s economic performance. This research used qualitative method, describing empirical data to solve research problems through secondary data collected from credible institutions.  The result of this research shows that during this past five years (2016-2020) Bahrain’s fiscal policy affect its economics performance in general. Bahrain’s fiscal policy is the type of policy that generate productive economy. The implementation of Zakat to reduce poverty shows that Bahrain implements fiscal policy in Islamic perspective. This kind of policy support state’s economic performance that leads Bahrain to be great.