Budget Highlights
Total revenue
Total expenditure
Budget deficit
Tax Implications for Business
📊 VAT Revenue Growth
VAT collection continues to exceed projections following the rate increase to 10%. Government reliance on non-oil revenue through VAT is increasing, signaling stricter enforcement ahead.
🏗️ Infrastructure Spending
BD 700M earmarked for infrastructure projects. Construction sector VAT implications will be significant — mixed-use development VAT treatment remains complex.
🎯 Fiscal Balance Program
Continued commitment to the Fiscal Balance Program targeting breakeven by 2027. May lead to new revenue-raising measures or expansion of VAT base.
💼 SME Support
Tamkeen allocations increased for SME development. Training subsidies, wage support programs, and startup funding may offset compliance costs.