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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman Budget 2018 puts economy on right track

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Three per cent economic growth forecast in 2018, says the budget statement. Other highlights are given below.


 


1.        The total public expenditure of the state budget for the year 2018 is estimated to be RO12.5 billion. 


2.      The estimated deficit for the fiscal year 2018 to be RO3 billion and 10 per cent of GDP. The deficit will be financed from internal and external borrowings.


3.       Government companies will be working on various projects in 2018, at the cost of RO3 billion. It will boost economic activities and job creations


4.      The financial allocation for the Year 2018 for the implementation of development projects amounted to about RO1.2 bn 


5.      The largest share was allocated to the sectors of education, health, housing and social welfare - RO3.8 billion.


6.      Total revenues amounted to RO9.5 billion, an increase of three per cent over the actual expected revenues for 2017, oil sector accounted for 70 per cent of oil revenues and 30 per cent of non-oil revenues.


7.      Total public expenditure stated in is RO12.5bn, an increase of RO800 million from the previous year. 


8.     The statement that it the government will continue to implement the privatization program as one of the basic tools to expand the participation of the private sector in owning, financing and management of economic activities. Working on the formalities to privatize public sector companies in 2018


9.      A positive growth rate for the Omani economy by at least three percent is expected in 2018, driven by the recovery of oil prices recovered, economic diversification efforts and the changing investment environment.


10.  The statement explained that the Government attaches great importance to training young Omanis job seekers and a National Training Fund was established and approximately RO62 million to cover the cost of training programmes for employment.


11.   The government will provide the necessary financial allocations to cover fuel subsidies due to eligible citizens and support needed to develop and strengthen the role of small and medium enterprises.


12.  The allocation of salaries and entitlements of employees was estimated at RO3.3 billion, including the periodic bonuses. The financial allocations for disbursement of development projects were estimated at RO1.2 billion to ensure work progress and completion of all projects under implementation without any delay or delay.


13.  The Finance Ministry that procedures for implementing the decision of the Council of Ministers to provide 25,000 jobs in the private and government sectors are underway. 4,800 jobs have been provided until the end of 2017.


14. The statement pointed out that the contribution of the private sector in the implementation of investment programs has increased from 52 per cent in 2014 to 60 per cent in 2017 by improving the investment climate and business environment and strengthening the public-private partnership and activating the privatization program.


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15. Electricity and cooking gas subsidies, housing and development loans, and operational support for government companies amounted to RO725 million, an increase of RO330 million from the approved 2017 budget.


16. Oil and gas production costs are estimated at RO 1.2 billion, an increase of 15 percent over the 2017 budget estimate.


17. 84 percent of the estimated budget deficit of RO 2.5 billion will be financed through external and domestic borrowing, while the rest of the deficit, estimated at RO 500 million, will be financed through the withdrawal from reserves. 


18. The total estimated income for the State budget for the year 2018, which were calculated based on the price of oil $50 per barrel toward 9.5 billion, an increase of three percent from the actual revenues projected for the year 2017.


 


 


 


 


 


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