Page 325 - Bahrain Gov annual reports (V a)_Neat

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FINANCE
The normal revenue in 1955 was less by about 67 lakhs than the revenue for 1954. The
decrease was in oil revenue, the reason for this being that certain outstanding payments of
income tax were received during 1954.
Most other sources of revenue were higher than in the previous year especially customs
duties which produced 16 lakhs more than in 1954.
Expenditure in 1955 was about 37 lakhs higher than in 1954, the principal increases being
in Public Health, Education and Public Protection, but there was also increased expenditure
in all other departments of the State due to departmental expansion, normal increments in
staff salaries and the adjustment which was made in all salaries when the State changed over
its method of payments from the Hejira Calendar to the Gregorian Calendar.
The State embarked upon the system of automatic annual increments many years ago
when there was a comparatively small number of persons employed by the Government; this
system produces an annual increase of about 5 % in the cost of Government departments.
The Budget for 1956 anticipates a total revenue of 500J lakhs which includes a special
grant of 20 lakhs from His Highness’s Privy Purse towards education and public health.
Income tax has been estimated at Rs. 361,80,000 which is the amount which can be expected
if the production of oil continues at its present rate. Customs receipts have been put at a
conservative figure, 17 lakhs less than the actual revenue in 1955. The interest from the
Reserve Fund has not been shown, it is now being automatically re-invested and added to the
Reserve Fund. Other sources of revenue have been shown as somewhat lower than the actual
receipts of the previous year, many of these receipts depend entirely upon local conditions, such
as land revenue which includes registration fees on sales of land which is an unpredictable amount
and rents of government buildings, some of which are leased to tenants, others being occupied
by Government officials, whose number is steadily growing.
On the expenditure side recurrent expenditure on administration, Public Health and Public
Protection, etc., amounts to 328} lakhs, which is 34} lakhs more than the amount spent under
the same headings in 1955. The largest increases are in Public Health, 5} lakhs, Education
9 lakhs and Public Protection 25} lakhs ; the budget for Public Protection provides for a
substantial increase in the Police Force, including a number of British Officers, together with
new equipment, vehicles and arms.
Non-recurrent work to be carried out by the P.W.D. includes the causeway leading to the
site of the deep water pier for which 20 lakhs is allocated, completion of schools at Hedd and
Samahij and extensions to the Secondary School, a Girls School at Rafaa and commencement
of a new primary boys school in Manama. Provision is made for beginning new barracks at
the Fort, a Police Station at Rafaa, extensions and additions to existing buildings and the
completion of the officers’ bungalows in the fort garden. A new women’s hospital is being
built at Hedd and the T.B. hospital is already to be extended, though it was only completed
last year. Work continues on the large women’s hospital south-west of the Fort, which will take
several years to complete.
Among other items in the P.W.D. budget are two more customs sheds (these pay for them­
selves in two or three years), 72 workers’ houses of a better type than those previously built,
a new workshop and shed for the Transport Department, completion of two blocks, each con­
taining six European style flats, in the Jufair area, and completion of a town drain to carry away
surface and rain water from the low-lying area on the south-west edge of Manama, market
premises at Sul A1 Khamis, reclaiming of more sea alongside the Customs pier, and the rehabil­
itation of Shaikh Hamad bridge, which may be postponed till the arrival of the Contractors who
undertake the deep water pier.
The figures shown on “Notes on Budget” indicate as nearly as possible the percentage of
expenditure in the Budget on different public services such as Public Health, Education, etc.
The one-third of the oil revenue which is paid to the Privy Purse is not included in this statement.
From this it will be seen that 23.83% of the 1956 expenditure is on Public Health, 16.61 % on
Education, 8.35% on roads, workmen’s houses, bridges, etc., 20.14% on administration and
16.59% on Public Protection.
On the revenue side, 63.47% is derived from oil receipts, 31.27 % from other sources and
5.26% is a special grant from His Highness.