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248                        Records of Bahrain
                                                     THE AGENCY
    :                                                 BAHRAIN
    :
                                 D.O. Mo.C/576.                   Dated the 4th of Juno, 1946.
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                                         Will you please refer to/the correspondence ending
                                  with your printed Letter N0.417-S dated the 6th of April,
                                  1946, on the subject^gf the Bahrain finances?
                                  2.     Criticises on Delgruve's work as Finance Officer
                                  have already,been made this year - vide my demi-official
                                  letter No.C/259 dated the 6th March, 1946, to Dir Geoffrey
                                  prior and the enclosures to Residency printed Letter NO.410-S
                                  dated the 5th April, 1946 - and progress in the various
                                  matters is being reported separately. Severe criticisms
                                  are made most years - vide Hickinbotham's letter No.C/393
                                  dated the 21st March, 1945, and pelly's demi-official/letter
                                  No.c/961 dated the 3rd October, 1945, to me - but now/that
                                  the/figures of actual expenditure have been provided (further
                                  comments are called for.                                  £ 3
                                  3.     The attached tables of estimates and actuals for 1364
                                  show clearly that the Financial Adviser has once again greatly
                                  over-estimated expenditure and under-estimated revenue, and
                                  for half the heads of revenue the actual receipts range
                                  between half and(half?as much again as the estimates. This
                                  travesties the drawing up of a budget and defeats the purpose
                                  implicit in it, the apportioning of an accurately estimated
                                  income to considered purposes. I do not propose to discuss
                                  here the effect of this on the Bahrain public, but to confine
                                  the subject matter of this letter to the preparation and
    \                             maintenance of the Bahrain accounts.
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                                  4.      The State has spent les3 than the s\uns estimated on
                                  Defence, Municipalities, oil Gauging, poor Relief, and
    1
     .                            Public Health measures (for which, due to prevalent condi­
                                   tions, there may be some justification) and has wound up
                                   the year with‘an allocation of Rs.18,84,548.7.0 towards the
                                  Reserve Fund, an excess of Rs.8,84,548.7.0 over the estimated
                                   figure and over and above the sum paid into the reserve fund
                                  from oil royalties.    There seems no good reason why these
                                   •savings' should not be re-allocated in the next budget
      i:                           instead of being lost to the public by being swallowed up
                                   in the general reserve fund, it is true that capital from
                                   the reserve has been used to finance major nublic services
                                   such as the bridge and the elctricity supoly, but those
                                   services are run on a strictly economic basis.
                                   5.     It may not be possible to make a separate reserve
                                   fund for all the major heads of expenditure, but I am of
                                   the opinion that separate reserve funds should be started
      \
                                   for public Health and Public Works. The State Medical
                                   Officer has recently inaugurated a campaign to advance the
                                                                               /genoral
                                                                                            ....
                                                                                  BIW           •*r. Y.
                            The Hon'ble Lt-col. W.R. Hay, C.S.I., C.I.1S.,        n
                                    political Rosident in tho Persian Gulf,              .. ^.3 .........
                                                  (Camp) Bahrain.                Dc.i:..... ..................
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