Muscat: His Majesty Sultan Qaboos Bin Said on Wednesday issued a Royal Decree No 1/2020, ratifying the State’s General Budget for Fiscal Year 2020, after it had been presented before the Council of Oman.
Article (1) ratifies the State’s General Budget for fiscal year 2020 in accordance with the tables attached to this Decree.
Article (2) instructs all ministries and government units to implement provisions of this Decree, each within the scope of its prerogatives.
Article (3) says that this Decree shall be published in the official gazette and enforced with effect from 1 January 2020.
As per an official statement, the budget projects total revenue of RO10.7 billion and a total expenditure of 13.2 billion. The total estimated revenues of the state budget for the current year 2020, which were calculated on the basis of the oil price $58 per barrel, are about $10.7 billion, an increase of six percent over the estimated revenue (RO10.1 billion) for the past year 2019.
It is estimated that the budget deficit of 2020 will reach about RO 2.5 billion, or 8 per cent of GDP, of which 2 billion or 80 per cent of the budget will be financed through external and domestic borrowings and 500 million will be covered by drawing on reserves.
The total public spending will see an increase of two per cent over the estimated spending for 2019. Even after taking into account the impact of the implementation of the OPEC agreement to reduce production, incomes from oil constitute 72 per cent of the total revenues while non-oil incomes constitute 28 per cent, mainly from the unification of municipal fees and amendments to the fees of some ministries.
Spending on basic social services (health, education and social welfare) constitutes 40 per cent or RO 5. 2 billion of the total expenditure (RO 13.32 billion), followed by 47 per cent or 6.2 billion on salaries and allowances.