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Bahrain's government has rejected Parliament's proposals to reform allowances paid to Bahrainis squeezed by years of austerity on the grounds that they would break government spending caps.The proposal submitted by Parliament would have required an increase in government spending at a time when Bahrain is struggling with a current account gap and a large deficit, which have dragged down prices of its bonds and weighed on the dinar.It would provide 150 dinars for Bahrainis earning less than 300 dinars a month – up from 100 dinars in the old system – 100 dinars for those earning up to 700, and 75 dinars for those earning up to 1,000, officials said.Bahrain's government did not respond to a Reuters request for comment.
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