Page 72 - Records of Bahrain (5) (ii)_Neat

394 Records of Bahrain

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advantagos of this schomo io that all tho money
is spent looally.

4. The rovunue of Bahrain in 1354 has
onoo again reached tho levol whioh it was ton
years ago and not for a long time has the Stato
oomploted a year with suoh a satisfactory surplus.
I think it oan now be reasonably aosumed that
the lean years have paosod and that a period of
finanoial prosperity io beginning, Neither now
nor at any timo during the anxious period of
finanoial depression has this State inourred
finanoial liabilities suoh as loans, In the
time of prosperity a Reserve Fund was started

and when in spite of all efforts and drastic economies
the revenue wub insufficient to oovor the expendi­
ture the Reserve Fund was drawn upon in order
to carry on the normal administration of the
country.
5. Tlie new prosperity is from the royalty
on oil, without this royalty it would still be
impossible to balance the Budget and to pay fbr
the administration of the country, Oil is an
uncertain faotor and its production depends not

only on the available supply but on the world
markets. I oonsidor that it is more essential now
than it has ever been before to build up a really
I
-I large reserve whioh besides providing a steady
income will be available if for any reason the
production of oil is restricted and the revenue
I
from oil dwindles to the minimum royalty whioh
i
is al).-----