Omani public sector firms to pare budgets by 10pc

Muscat: Oman’s Ministry of Finance has issued a circular directing all state-owned companies to implement recent Royal directives underlining the need for urgent fiscal measures to alleviate the impact of slumping oil prices on Oman’s finances. The circular calls on state-owned enterprises to take measures to cut spending, boost revenue earnings, and thereby reduce the budget deficit. These goals should be achieved by (i) Reducing the operating and administrative expenditure approved for the financial year 2020 by 10 percent; (ii) Suspending the implementation of new projects, as well as capital expenditures for the year pending the re-evaluation of the projects in question in the next fiscal year; (iii) Suspending all external training programmes and participation in workshops, conferences and exhibitions; and (iv) slashing allocations towards official missions by no less than 50 percent. In its circular, the Ministry of Finance stressed the need for all state-owned companies to submit revised operating budgets before the end of April incorporating the spending cuts enumerated above. The ministry called on the internal audit departments in these firms to ensure strict compliance with the Royal directives.