Page 593 - Bahrain Gov Annual Reports (I)_Neat

advantages of this scheme is chat ail Uiu money
is spent looully.
4. The revenue of Bahrain in ld&4 has

ouoe again reached tiie level which it was ten
years ago and not for a long time hao the otate
completed a year with such a satisfactory surplus.
I think it oan now be reasonably assumed that
the lean years have passed and that a poriod of

financial prosperity is beginning. Neither now
nor at any time during- the anxious period of
financial depression has this btate incurred
financial liabilities such as loans. In the
time of prosperity a Reserve Fund was started

and when in spite of ail efforts and drastic economies
the revenue was insufficient to oover the expendi­
ture the Reserve Fund was drawn upon in order
to carry on the normal administration of the
country.

5. The new prosperity is from tne royalty
on oil, without this royalty it would still be
impossible xo balance the budget and to pay for
the administration of the country. Oil is an

uncertain factor and its production depends not
mly on the available supply but on the v,orld
rkats. I consider that it is more essential now
Vi it ha8 ever been before to build up a really

resarVe *atoh besides providing a steady
'e will k® av&ilable if for any reason the
'ti0n 0f oil restricted and the revenue
'A dwied^03 *° ^10 minimum royalty which

is all----