Page 251 - Bahrain Gov Annual Reports (I)_Neat

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Maharaq Electric Extension; the whole of this amount
v/as paid during 1350 and at the beginning of 1351 the
State had no financial liabilities whatever.'

In the Budget for 1351 the expenditure has been
reduced to about Rs 40,000/- less than that of 1350,
partly by means of a 10^ cut on salaries of all Govern­

ment servants receiving pay of over Rs 36/- per month
and partly through the abolition of the post of the
Commandant of Police and various other economies.

Although a reduction of I0f5 was effected in the
Civil List at the beginning of 1350 this item still
absorbs more than 50/s of the estimated revenue.

The financial prospects for the new year are not
encouraging. The pearl trade on which the whole of

Bahrain depends, is in a desperate condition, last year
there v/as very little market for pearls and once again
the 3ahr8in merchants have accumulated another season’s
catch most of which they were unable to sell.

By means of drastic economies and some new taxation
the new Budget has been balanced, but it allows for no
margin whatever and if the bulk of imported cargo dimi­

nishes, as is possible, the measures which have been
adopted to balance the Budget on the Revenue side will
fail to produce the required effect.

In one direction only there is a possibility of incre­
ased revenue, but this possibility is very problematical.

If the Bahrain Petroleum Co. should succeed in finding a
commercially negotiable quantity of oil it might be rea­
sonably hoped that the Royalty payable by the Company to

the State would be sufficient to relieve it from its
present financial degression.
I have the honour to be.
Sir,
Your obedient servant,