Bahrain is set to cut electricity and water subsidies in a bid to boost government revenues amid low oil prices and declining income streams.

In a statement released by the Ministry of Energy, Manama said plans to cut subsidies and generate an estimated BD171m ($453m) in additional revenues over the next four years.

The government says that funds generated from subsidy cuts will be “redirected to benefit citizens.”

Since the fall of oil prices last year, it has been key for Bahrain to limit public spending to curb its modest reserves.

The main challenge facing Bahrain this year will be cutting public spending while raising revenues to prevent the fiscal deficit from escalating out of control.

Bahrain has received a number of guarantees from Saudi Arabia, which has said it is committed to helping the kingdom alleviate the impact of falling hydrocarbon prices by supporting major infrastructure schemes across the country.

Bahrain’s 2016 budget is yet to be announced.