Page 147 - Bahrain Gov Annual Reports (II)_Neat

General Review

The year 1357 was financially satisfactory. The total revenue was 48 lakhs,
nearly five lakh6 more than in the previous year and six lakhs more than I had
anticipated in the Budget.
I was able to add 19 lakhs to the Reserve Fund which now amounts to
40 lakhs and at the same time to spend 2.J lakhs on social services,
education, public health and municipalities, 3 lakhs on public protection and 4J
lakhs on Public Works in addition to paying for the general administration of the
State and providing 16 lakhs for the Civil List and allowances to the Ruling Family.
The financial prospect for the new year is not however as promising as it was
for 1357. The pearl industry is again suffering from severe depression and the
development of Ras Tanura, as the port for the eastern side of Saudi Arabia, will
put an end to most of Bahrain’s transit trade and will also affect the direct imports
into Bahrain. The development of this port was inevitable but fortunately, for
Bahrain, the port was not opened before the California Arabian Oil Company had
imported a large quantity of equipment etc., for their operation on the mainland
which came through Bahrain and on which customs was paid. I have anticipated
a reduction of 4 lakhs in customs revenue but possibly the position may not be as bad
as I anticipate.

The chief expenditure items in the Budget for 1358 which is the 13th Budget
that I have had the honour of submitting, are a proposed investment of 11 lakhs,
from revenue, and 3 lakhs from balance, to be added to the Reserve Fund; provision
of 3 lakhs for the cost of the Manama Muharraq bridge and a heavy programme of
public works including the hospital building.
On the revenue side the oil royalty has been assessed at the same amount as
in the 1357 Budget. Included in miscellaneous receipts are 4 lakhs which are
expected to be received on account of certain special oil payments other than
royalty.
Events of importance during the year included His Highness’s illness in the
summer and his subsequent visit to Kashmir for recuperation and the visit of
H.R.H. Princess Alice and the Earl of Athlone to Bahrain on their way back from
Saudi Arabia.
Relations with neighbouring States, excepting Qj- tar, continued to be
friendly. Trade and intercourse with Qattar have not been resumed.
Negotiations regarding an oil concession over the additional area of Bahrain
with the Bahrain Petroleum Company and Petroleum Concessions Limited took
place during the early summer and in the autumn and winter but at end of the year
no definite arrangement had been arrived at.
A certain amount of political unrest was prevalent during the year which
terminated in a demonstration during Ramadan, this is dealt with elsewhere in the
report.

C. DALRYMPLE BELGRAVE, C.B.E.,
Adviser to the State of Bahrain.