Oman projects 3.3b riyal deficit for 2016

Oman has posted a deficit of 4.8 billion riyals in the first ten months of 2016, as revenues declined by 25 per cent due to the slide of the oil prices, according to the National Centre for Statistics and Information (NCSI) figures.

The revenues stood at 5.5 billion riyals by the end of October this year, compared to 7.4 billion riyals of the same period last year, due to the decline of oil and gas revenues.

Moreover, the total general spending has declined by 8.6 per cent, reaching 8.9 billion riyals, compared to 9.7 billion riyals of the same period last year, due to austerity measures taken by the Omani government to rationalise spending amid the slump of the oil prices.

The current spending on security defence and national security has climbed by 3.6 per cent, reaching 1.7 billion riyals until the end of October this year.

Meanwhile, the Ministry of Financial Affairs said that it will unveil the 2017 General Budget in January

Oman’s 2017 budget will not include any cut in wages and salaries as well as the basic services provided to citizens, Saleh Musin, the head of Economic Committee of Shura Council said earlier.

In November, the Shura Council discussed the 2017 budget with the Minister Responsible for Financial Affairs, Darwish Al Beloushi, in a closed session.

The 2016 budget projects 3.3 billion Omani riyals (Dh31.47 billion) in deficit spending for 2016, which, it says, it will try to reduce by improving the non-oil revenues as well as cutting expenditures.

Oman posted a budget deficit of 4.5 billion riyals in 2015, as revenues declined by more than 50 per cent.

The ministry of Finance has issued 19 circulars so far this year aimed at controlling and managing spending.

Oman, a modest oil producer among Gulf Cooperation Council states with not more than one million barrels a day, needs oil prices of more than $100 a barrel to balance its budget

source : gulfnews