Muscat: The Ministry of Finance today issued Financial Circular No. 13/2020 stipulating the “Rationalization of Developmental Expenditure of Ministries and Civil Units”.
The Circular 13/2020 states the following:
“In implementation of Royal orders of His Majesty the Sultan, necessary financial procedures shall be undertaken to tackle the impacts resulting from the decline in oil prices to help provide financial abundance (solvency) through rationalized spending with a view to shrinking deficit of the state’s budget. This includes a 10% reduction of liquidity allocated to developmental budgets of ministries and civil government units for the fiscal year 2020.”
The Ministry of Finance said that all ministries and government units have been informed to apply the cuts while at the same time considering priorities, on top of which come their commitment to provide the prescribed amended liquidity, payment of maturated instalments to contractors and suppliers, rescheduling expenditure tables for the rest of the year 2020 in accordance with the amended liquidity, and coordination in advance with the Ministry of Finance to get its approval before floating any tenders or awarding any works or entry into any financial obligations based on the approved developmental budget.
The Ministry reaffirmed that no demands for any additional financial allocations shall be entertained during this year, which calls for full adherence to this circular towards serving public interest due to the prevalence of current unfavorable economic conditions.” –ONA