Page 142 - Bahrain Gov Annual Reports (III)_Neat

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GENERAL REVIEW.

The revenue for the year 1363 was over 55 lakhs and was the highest so far
achieved in the history of the State, the expenditure was proportionally high
and amounted to over 33 lakhs. Approximately 14 lakhs was added to the
Reserve Fund which at the end of the year exceeded one crorc. The increase in
revenue was mainly realised from customs receipts and almost all the expenditure
was upon salaries paid to people of the country serving the Government in various
departments, in social services and in the armed forces of the State. The fortunate
financial position of the State was to a great extent due to war conditions. High
prices of imports resulted in big customs receipts and the oil royalty remained the
same as in 1362, though lower than it was in 1359 and 1360. The duration of
the present output of Bahrain oil is an uncertain factor, customs revenue will
undoubtedly drop when conditions return to normal and the future of the pearl
industry is problematical. During the years while revenue is high and expansion
and major works are curtailed by the war the State has the opportunity of adding
as much as possible to the Reserve Fund with the object of ensuring an income
from investments which it may well stand in need of in the future.

Development and expansion were restricted for another year owing to the
continued difficulties in obtaining all kinds of imported goods and because of the
shortage of labour. No new projects were undertaken and the Government
reduced its requirements of man power to the minimum in order not to compete
in the labour market with employers who were engaged upon urgent and essential
war work. The demand for both skilled and unskilled labour was so great that
women and children were employed, for the first time, on building projects and
foreign labour was imported from neighbouring countries. For these reasons the
report of the Government's work during 1363 is a static record restricted to
departmental activities.

A noticeable feature during the year was the marked improvement in the
condition of the people of Bahrain, this was partly due to well paid work being
available for everyone capable of working and partly owing to the smooth running
of the rationing system. The general improvement was reflected in Public Health,
the condition of school children and in the significant falling off in the numbers
of poor people who applied for the free distribution of food which was arranged
by the Government. Even the Shia Poor Relief Committee, responsible for
relief measures in the villages, which used to stress the adverse conditions of the
villagers in contrast to the Sunni townsfolk, grudgingly admitted that most
of the villagers were now prosperous. Throughout the year thousands of labourers
were supplied with rations at cheap rates by their employers, in addition to their
regular rations which they were entitled to buy at the Government ration shops.
The labourers’ rations included rice, which was not available in the bazaar, and
much of this commodity found its way to the Black Market where it was bought
from the labourers by wealthy Arabs. When, after Japan came into the war,
imports of rice ceased, the wealthy Arabs had stocks of rice and the working people
had none.