Page 275 - Bahrain Gov Annual Reports (IV)_Neat

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FINANCE
Revenue and Expenditure, 1369.—During 1369 the Bahrain Petroleum Company completed
the first fifteen years of its concession and the rate of the oil royalty became due for revision. Negotia­
tions between the Company and the Government resulted in the rate of royalty being raised from
Rs. 3/8 per ton to Rs. 10/ per ton. Payment at the new rate for a period of six months was included
in the revenue for 1369 which amounted altogether to Rs. 170 lakhs, approximately 48 lakhs more than
the income in 1368 and 57 lakhs more than the estimated income for 1369. Other sources of revenue
produced about the same amount as in the previous year. Customs receipts, which during recent
years have shown substantial annual increases, were only 1} lakhs higher than in 1368 which is
perhaps an indication that the limit to this source of revenue has been reached.
The State's expenditure in 1369 was Rs. 126 lakhs, the largest expenditure item being
” allowances to the Ruling Family " which increased in proportion to the income from oil. State
departments including Customs and Accounts cost 1 lakh more than in 1368, a separate Accounts
Department was set up in the Bab-al-Bahrain office and in other branches of administration more
local personnel was enlisted to deal with the greater amount of work. It is the policy of the Govern­
ment to use local Arabs in all posts which they can fill in spite of the fact that in many eases the employ­
ment of foreign clerical staff would be more economical and efficient.
About 1 lakh more than in 1368 was spent upon Public Health and expenditure on Education
was 1J lakhs higher; these figures do not include the cost of new buildings, schools and hospitals, on
which over 13 lakhs was spent during the year.

The amount spent by the Public Works Department both on new works and on annual repairs
was much higher than in the previous year. Several important works and extensions, such as the
enlargement of the Muharraq Boys’ School, which had not been provided for in the Budget, were
approved during the year when it was known that the oil revenue would increase.
Under capital expenditure there was an advance of 10J lakhs to the Electric Undertaking for
the purchase of new plant and for relaying distribution services. Owing to the expansion of Manamah
Town, the great demand for electricity and the increased load the existing distribution system now
requires to be almost entirely rclaid. A further payment of iA lakhs was made to the Water Scheme
and an advance of 9 lakhs was made to the Foodstuffs Account for the purchase of more rice. A sum
of Rs. 4 lakhs was lent to the Minors’ Department on which the Government receives interest at the
rate of 3 per cent.
Budget 1370.—In 136S, before the oil royalty revision, the annual revenue was 122 lakhs.
In 1369 the revenue, including a half year's royalty payment at the new rate, was Rs. 170 lakhs. The
total estimated revenue for 1370 is Rs. 203I lakhs, over ii million pounds sterling, of which Rs. 138
lakhs is expected to come from oil royalty, Rs. 52 lakhs will be derived from Customs Receipts and
Rs. T3J lakhs from other sources of revenue.
Out of the Rs. 138 lakhs, 46 lakhs will be paid to the Privy Purse. The State will spend 12$
lakhs on Administration and 70]- lakhs on Public Services, including Public Protection, Roads, Public
Health and Education. Capital expenditure will be 46] lakhs, out of this sum 31 lakhs will be spent
on what can be described as revenue producing projects including the proposed new deep water pier
and buildings for letting. The payment of 10 lakhs for the purchase of food supplies is a refundable
item. The sum of 2SJ lakhs will be available for investment during the year.
Larger amounts have been allocated to recurrent expenditure on Public Protection, Administra­
tion and Social Services. The cost of State Departments is about 1 lakh higher than it was in 1369,
on Public Health additional expenditure of 2\ lakhs has been allowed and Education will cost 4 lakhs
more than in the previous year, these figures however do not include the cost of many large new
buildings which are shown under " Public Works.” The allocation for Public Protection provides
I for some increase in the Police Force, which is under strength.
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