Page 448 - Bahrain Gov annual reports(V)_Neat

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The Annual Report for 1955 contains a summary of the oil revenue and other revenue for
the previous 20 years which, condensed, shows the following facts :
From the time when the first oil payment was received the total revenue was approximately
20 million pounds, excluding the payments of one-third of the oil revenue to the Privy Purse.
The revenue included 11J million pounds from oil and £900,000 interest from the reserve fund.
During these 20 years 5 million pounds was spent on non-recurrent major projects such as
the electricity scheme, town water supply, hospitals, schools, piers, customs buildings, flats and
shops for letting, workers houses, offices, staff quarters and police buildings, and 6;| million
pounds was invested in the reserve fund. The amount spent on major works with the amount
invested in the reserve fund, equals approximately, the revenue received during the 20 years
from oil payments.
Until 1955 the State was able to pay for the day-to-day cost of the administration, police,
medical work, schools, courts, salaries, e(c., etc., out of the revenue from other sources than oil,
principally from customs receipts.

BUDGET 1957

Revenue. Out of a total estimated revenue of 608 lakhs, 450 lakhs is income from oil,
110 lakhs is expected from the customs and 32 lakhs, to be invested, is the interest on the
Reserve Fund. The figure for oil is based on the preliminary information supplied by the
Bahrain Petroleum Company, it does not take into consideration the possibility of any abnormal
increases in petroleum prices or any stepping up of the present rate of production.
Discussions took place during the year about the desirability of an outside opinion from
some well known firm of oil consultants on the probability of increasing the output from the
Bahrain field without endangering the life of the oil field. No decision had been reached in
this matter at the end of the year. If an outside opinion was obtained it would show whether
there was any justification for criticism of the policy of the Government and the oil company.
Many people, who have no knowledge of oil production, think that the company should be
forced by the Government to produce more oil. They do not appreciate the importance to the
economy of Bahrain of preserving the oilfield for as long as possible as a productive concern.
They would prefer to see all the oil extracted in as short a time as possible, turned into cash
and then let the future look after itself.
Although last year the customs receipts amounted to 128 lakhs, on the advice of the Director
of Customs not more than 110 lakhs can be anticipated with certainly.
Other sources of revenue do not differ greatly from last year. Oil inspection fees have been
assessed on the assumption that the flow of oil will return to normal in the middle of the year.
Rents of buildings are higher as certain departments now pay rent for the Government buildings
which they occupy. In 1956 His Highness allocated 20 lakhs from his Privy Purse towards the
cost of new schools and expansion of the medical services. This assistance is not expected to
be forthcoming in 1957.
In 1956, 6J lakhs was collected from Land Revenue, part of this was from sales of Govern
ment land. The estimated amount is smaller as it is not likely that the Government will make
any further important sales in 1957.
Expenditure. The total expenditure is estimated at 576J lakhs with a surplus of 32 lakhs
for investment in the Reserve Fund. It is no longer possible to aim at investing one-third of
the revenue in the Reserve Fund nor is much of the expenditure, except the new deep water pier
(67 lakhs) likely to be productive. The largest item of expenditure is Public Security for which
70 lakhs has been allocated, over half a million pounds sterling, and an increase of 20 lakhs over
the actual expenditure in 1956. Provision has been made for a force of 1,000 men and for
additional British and Arab officers and more equipment and transport. The cost of new
buildings for the police is included under Public Works.