Page 93 - Records of Bahrain (5) (ii)_Neat

Revenue-expenditure budgets 415

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(b)
(I) In tho worst year I oan find, Bahrain
State Income from all sources excluding oil was

nmountod to Its. 6,71,000, We should, therefore,
bo safe in taking Rs. 6J lakhs as the worst pro­
bable inoomo when oil closes down.
(ii) Excluding spocial items of new expendi­
ture (non-recurring) and His Highness' share of
oil royalties, the current year's expenditure bud­
get is roughly Rs. 10 lakhs* This budget was framed

in the comfortable knowledge that there would be
is
no shortage of money and/therefore not a "pinched"
budget. But oxpanBion of Public Health, Agricul­
ture and Education Departments — and probably
Public Works (recurring) is inevitable and a nor­
mal expenditure budget should not bo anticipated

at less than Rs. 12£ lakhs. This will allow for
something to come and go on, but seems to me a
fair figure.

II. Deductions*
(a) It follows from (b)(i) and (ii) above
that Bahrain, to be on the safe side, requires an
additional permanent income of Rs* 6 lakhs per

annum.
(b) If Government stocks or other gilt-edged
Present invest­ ♦
ments yield 3*}%. (trust) securities oan be purchased to yield 8%
on capital, tho sura to be invested in order to pro­
duce an income of Rs* 6 lakhs is roughly Rs. 200

lakhs. Existing investments total roughly Rs* 13
lakhs leaving Rs. 187 lakhs to go •
(c) The expected minimum total royalty la
Rs* 440 lakhs, of which ^ goes to His Highness the
Shaikh, leaving roughly Rs. 293 lakhs for the State*

III./-