Page 297 - Records of Bahrain (6)_Neat

Budgetary affairs 285

British Residency,
Bahrain,
No, 12 (11111/2)
29th January, 1951*
UNCLASSIFIED
a

Sir,

I have the honour to forward a copy of the Bahrain
Budget for the Muhammadan year 1370 together with a copy
of the Explanatory Note under which the Adviser has
communicated it.
2. The increase in the rate of royalty payable by the
Bahrain Petroleum Company Limited from Rb,3/8 to Rs,10
per ton transforms the picture, so that the year 1370
is expected to show a Revenue of some 90 lakhs in
excess of that estimated for 1369. Wo had grown
accustomed to regard the income from Bahrain royalties
as settled in the neighbourhood of 50 lakhs, but hence­
forth must reckon it as of the order of 140 lakhs, or
nearly three times the former amount, Thanks to this
additional sum of 90 lakhs, the Shaikh and his family
will benefit to the extent of 23 lakhs; Education and
Public Healtli will between them get an extra 8 lakhs;
Public Works and Capital Expenditure will absorb
another 10 lakhs; the Pier project will account for
20 lakhs; and the remainder, about 28} lakhs, v/ill
be made available to the Reserve Fund for investment.
3. The estimated revenue in 1370 is 203? lakhs of
which the chief items areir
Oil 138 lakhs
Customs 52 u
Interest on invested
reserve 5i "
4. The estimated expenditure in 1370 covers notably;

Allowances to Ruler,
including Civil List 46 lakhs (i.e. 1/3 share
(of 130 lakhs
Education 15-:
Public Health 13 I :
Public Protection 13.1/3 lakhs
New Public Works 32| lakhs
Purchase of Rice & °ugur 10 11
Pier Project 20 11
5. The first of these items of expenditure is from
our Western standpoint open to criticism, Before the
increase in the oil royalties, the Ruler kept one
third of these royalties, amounting to about 16} lakhs,
for himself and paid his relations allowances amounting
to about 6} lakhs from the general revenues, He used
to supplement these allowances substantially from his
Hie Majesty's Secretary of State
for Foreign Affairs,
Foreign Office, / share
London. S.W.1.