Page 83 - Bahrain Gov Annual Reports (II)_Neat

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General Review.

This report gives the details of the Revenue and Expenditure of the Bahrain
State during the year 1356. It also contains notes on the activities of the various
Government Departments, the Budget for 1357 and some particulars of events of
importance which took place in Bahrain during the year.
Financially the year has been a prosperous one, royalties from oil alone
yielded Rs. 31,05,000 and the total income of the State amounted to Rs. 43,30,000
representing an increase over the Budget estimate of Rs. 21,26,000 and an increase
of Rs. 24,89,000 over the last year’s revenue. The Reserve Fund was increased
during the year to Rs. 20,00,000 and the State completed the year with a
substantial balance of Rs. 6,00,000.
Trade in Bahrain was more flourishing during the year than it has been for
some time past though at the end of the year there was less activity in the bazaar
than earlier on. The diving season also showed considerable improvement but this
improvement too was not maintained and at the end of the year pearl prices slumped
to a very low ebb. Disturbed conditions in Europe have contributed to the depression
in the pearl market.
The increased revenue and the improvement in trade are mainly the result of
the continued development of the oil field by the Bahrain Petroleum Company whose
25,000 barrels refinery was opened in December, 1937.
A possible criticism of the Government’s administrative policy during the
year might be made on the grounds that with so large an increase in revenue more
conspicuous new schemes and improvements might have been carried out.
People are liable to lose sight of the fact that out of a total revenue of
Rs. 43,00,000 over Rs. 15,00,000 was paid to the Ruling Family in the Civil List
and as their share from oil royalties.
In addition to this large sum, Rs. 16,50,000 was contributed to the Reserve
Fund as it is essential that this fund should be built up in order to provide an assured
income for Bahrain when revenue from oil begins to decrease. This event may
occur from natural causes, owing to the exhaustion of the oil suppl* or by reason of
commercial policy in the oil world.
From the remaining revenue, only slightly over 101 . khs was expended and
from this sum 31 lakhs was spent on Public Works, Rs. 2,30,000, was spent on
Public Protection which included considerable expansion of the Police Force and
purchase of new arms and equipment and the remaining 5 lakhs represent the cost
of the whole administration including Education, Municipalities, Medical and
Administrative Departments.
Events of outstanding importance during the year were His Highness’s visit
to Mecca, the visit to Bahrain of His Royal Highness the Amir Saoud and the
Zabara affair.
C. DALRYMPLE BELGRAVE, c.b.e.
Adviser to the State of Bahrain.