Muscat: His Majesty Sultan Haitham bin Tarik has issued Royal Decree 1/2021 approving the Tenth Five-Year Development Plan 2021-2025 and Royal Decree 2/2021 approving the state’s general budget for the fiscal year 2021.
Both decrees shall be published in the official gazette and enforced from the first January 1, 2021.
As per the details available, the total estimated expenditure for the year will be RO10.88 billion, while revenues will be RO8.64 billion and the projected deficit is RO2.24 billion.
“The total estimated revenues of the state’s general budget for the year 2021, which were calculated based on the price of oil $45 per barrel, estimated to be RO8.64 billion, a decrease of 19 percent from the estimated revenues for the last year 2020,”
Total public spending is estimated at RO10.88 billion, a decrease of 14 percent from the estimated spending for the year 2020.
The 2021 Oman Budget is based on an average oil price of $45 per barrel.
The deficit for 2020 is expected to be RO4.2 billion.
“It is estimated that the 2021 budget deficit will reach about RO2.24 billion, at the rate of (8) percent of the GDP, provided that 73 percent of the deficit, around RO1.6 billion is financed through external and domestic borrowing. The remaining deficit, estimated at RO600 million will be financed through withdrawal from reserves.”
The decline in public spending expected for the last year 2020 is RO12.6 billion, compared to the spending approved in the budget.