Page 386 - Bahrain Gov Annual Reports (IV)_Neat

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this rate was only paid for half the year, and also a payment by the Bahrain Petroleum Company
of Rs. 5 lakhs monthly for three months. Customs collections rose steeply and exceeded the
previous year's total by Rs. 21 \ lakhs. Most other sources of revenue produced more than in the
previous year.
The total expenditure during the year, including the payment of one-third of the oil revenue
to the Privy Purse, wasRs. 156 j lakhs; in 1369 the State spent Rs. 126 lakhs. The cost of the administra­
tion in most departments was slightly higher than in 1369 and there was a large increase in the
sums spent on Public Health and Education. The cost of the Pood Control Department was
previously debited against the sales of commodities, in 1370 it was shown as a separate item. The
amount spent on Public Works in the two years was identical.
Budget 1371.—The total estimated revenue is Rs. 284^ lakhs which is approximately 2 J million
sterling. The principal sources of revenue arc the oil royalty and customs receipts. It is assumed
that the production of oil will be maintained at the same level as in 1370. Towards the end of 1370
the Bahrain Petroleum Company agreed to make a voluntary payment to the State of Rs. 60 lakhs
per annum, with this additional payment, at the present royalty rate, which is Rs. 10 per ton, the
revenue from oil will amount to Rs. 198 lakhs. Customs receipts arc estimated at Rs. 70 lakhs, this
figure is based on the average customs revenue during the last two years. In 1370 customs revenue
totalled Rs. 81 \ lakhs. Other sources of revenue differ little from last year’s figures. The income from
the Reserve Fund increases each year as the fund is added to, the State now has Rs. 221£ lakhs,
approximately £1,662,000, invested in British and Indian Government stock. The amount invested
in 1370 was Rs. 29 lakhs. Another increasing source of income is from rentals of buildings which are
constructed by the State and leased to tenants. An advantage of this form of investment is that the
capital cost is expended in Bahrain. The actual revenue in 1370 was Rs. 251J lakhs, the estimated
revenue for 1371 is Rs. 33 lakhs higher than in 1370.
The budget provides for the expenditure of Rs. 207! lakhs, including the Ruler’s share of the oil
royalty which amounts to Rs. 66 lakhs, and a further investment of Rs. 77 lakhs in the Reserve Fund.
There has been a sharp increase in the cost of all departments, especially of those in which much local
labour is employed, owing to the wage increases which came into force in the latter part of 1370.
departments where a large proportion of the pay is drawn by lower grade employees, such as schools and
the State Police, wages have risen by 20-25 per cent. In the case of higher grade employees the difference
is less. State departments will cost Rs. 2 lakhs more than in 1370, Education is almost Rs. 5 lakhs
higher, but both the number and the size of schools is greater. Public Protection, on which Rs. 12 J
lakhs was spent in 1370 will cost Rs. 16 lakhs, provided that the Police force is brought up to strength,
there are now only 279 N. C. Os. and men in the State Police, the authorised strength being 35°
N. C. Os. and men. The Police budget provides for Naturs as well as Police. It should be observed that
the cost of new buildings such as schools or hospitals is not included in Education or Public Health
budgets but is shown under Public Works. The subsidies to the Municipalities have been increased by
Rs. 1 lakh and the Sunni and Shia Waqf departments are each to be given a loan of Rs. 1 lakh, without
interest, repayable within ten years, to be spent upon improving Waqf properties. It is hoped that
work will start on the deep water pier scheme and for this purpose Rs. 20 lakhs has been set aside.
I completion of two blocks of European style flats on the Awali Road and the commencement of a third
The Public Works budget this year is just under Rs. 50 lakhs. The large programme includes the
block of flats. The building of flats of this type is one of the few methods of local investment and also
supplies the housing needs of the ever growing European community in Bahrain. The nine Govern­
ment shops in Barrett Road, the principal shopping centre of Manamah , are to be enlarged by the
addition of a first floor. Rs. 2 lakhs have been allocated for building small workmen’s houses
which will be leased at low rents to Arabs who now inhabit Baraslis. This is the first experi-
ment that the Government has made in housing schemes ; if it proves successful the project will be
extended. On productive schemes the State will spend Rs. 15 lakhs.
Unproductive works include the completion of a Public Health building, on the Awali Road,
the commencement of a new women's maternity hospital and a small bungalow for a lady doctor.
A large new boys' school on the sea front at Muharraq will be completed. Additional married quarters

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