Page 489 - Bahrain Gov Annual Reports (IV)_Neat

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The Government continued to maintain the Food Control Department subsidising the
price of meat by giving sugar at half cost price for barter and issuing a ration of rice from
Government stocks at a subsidised price, and by doing so tying up about 54 lakhs which would
otherwise produce interest. The fact that the Government subsidises meat and rice is not
generally appreciated by the public nor is it liked by the merchants.
During the year the Reserve Fund was increased by 120 lakhs of which 40 lakhs should
have been invested at the end of 1370. Purchases from the United Kingdom amounted to
44 lakhs, and the remainder of the expenditure was spent almost entirely in Bahrain.

BUDGET, 1372
Budget 1372.—The 1372 Budget was made before the negotiations for a 50-50 arrangement
with the Bahrain Petroleum Company were completed and the revenue from oil is assumed to
be at the same rate as in the previous year.
Customs revenue in 1371 attained the very high figure of 97 lakhs. During recent years
this revenue has steadily climbed but it must inevitably reach the peak. In the budget an income
of 84 lakhs has been anticipated. This is a conservative estimate likely to be surpassed.
The interest from the Reserve Fund, which is invested in British stock, increases as the
fund is added to; it will produce this year 10 J lakhs.
Land revenue includes sales of land which is an uncalculable item, has been assessed at less
than half the amount which was received last year. It is the Government’s policy to encourage
the working classes to own the land on which they live, but unfortunately little land remains
in the possession of the Government in or close to the towns of Manama and Muharraq where
there is most demand by purchasers. In the past great areas of land around the towns were
sold by the Rulers or in many cases given away, often to persons of foreign nationality.
Medical receipts, which include quarantine fees and private ward charges, are expected to
increase, they have been estimated at almost twice last year’s figure.
The only other source of income which shows any noticeable increase is rents of shops and
buildings. This is the income from European style flats and from shops which are built by the
Government as a local investment.
Current expenditure, excluding new public works, pier scheme, electric expansion and
contribution to the Reserve Fund will be about 15 lakhs higher than in 1371. As usual the
increase is mainly in the Education and Public Health budgets. The former rises by 5} lakhs
and the latter by 6$ lakhs. There has been considerable expansion in both these departments,
new schools were opened towards the end of the year and more schools will be opened in 1372 ;
more students are being educated abroad and more teaching staff is employed.
On the Medical side there has been an increase in key staff, greater use of new and expensive
life-saving drugs, and more anti-malaria field work.
Under Public Protection provision is made for the Police Force to be brought up to
strength and to provide for this the amount allocated is 3J lakhs more than was spent in the
previous year. ;
Non-recurrent expenditure includes 40 lakhs towards the cost of the deep water pier
scheme. In 1371 a survey was made of the site and bore holes were drilled along the proposed
channel and on the site of the pier. The information thus obtained was sent to the Government
Consulting Engineers in London whose report is still awaited. Expenditure on electricity
includes the cost of new plant for the power station. New works to be carried out by the
Public Works Department include the completion of two blocks of flats and commencement of
a third block and the addition of an upper floor above the line of shops in Barrett Road. All
these buildings are productive works. Unproductive expenditure includes extension of the
Manama Customs pier and four additional Customs sheds, quarters for married and sing e
foreign school teachers, who are at present accommodated in hired buildings, part cost ° t e
new Palace, part cost of a new maternity hospital, which was included in last year s budget, ut
which was not proceeded with, more private wards in the Manama Hospital and one or two
additional village dispensaries. One more village school will probably be built in the A u
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