Thursday, March 28, 2024 | Ramadan 17, 1445 H
broken clouds
weather
OMAN
23°C / 23°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

RO 8.64 bn revenues, RO 10.88 bn spending, RO 2.24 bn deficit

1565903
1565903
minus
plus

The Sultanate’s state budget for 2021 announced on Friday estimates


RO 8.64 billion in revenues, RO 10.88 billion in total spending and RO 2.24 billion deficit.


The 2021 budget is based on an average oil price of $45 a barrel, and an average daily production of oil and condensate at 960,000 barrels.


While total estimated public spending in the current budget is 14 per cent less than RO 13.2 billion in 2020 with an increase of 2 per cent against 2019 budget, it is estimated that the 2021 budget deficit will be RO 2.24 billion, or 8 per cent of the GDP.


It is estimated that 73 per cent of the deficit, or RO 1.6 billion, will be funded through external and local borrowing. The remaining RO 600 million or 27 per cent, will be financed through withdrawal from reserves.


For the first time, Oman’s state budget has excluded the oil and gas sector expenditures, which on the other hand, has been transferred to the newly-formed Energy Development Oman SAOC (EDO).


The formation of the fully state-owned enterprise was announced by the Ministry of Finance in the first week of December to carry the weight of funding the oil and gas sector from the state budget.


“The 2021 Budget has been prepared in accordance with the main objectives of the Tenth Five-Year Plan and the “Oman Vision 2040” and government measures blessed by His Majesty Sultan Haitham bin Tarik that aims to increase revenues and reducing public spending to achieve the state’s financial sustainability”, said a statement from the Ministry of Finance.


This will enable the national economy to continue achieving the targeted growth rates, accomplishing economic diversification programmes, domestic and foreign investment targets, and empowering the private sector to play a greater role in managing the economy and providing job opportunities, the statement adds.


The ministry indicated that the government has taken a number of financial and economic measures to face the challenges arising from the COVID-19 situations, and the continuous decline in oil prices.


“The government will continue to complete the infrastructure supporting to stimulate economic growth, give priority in implementing the necessary and productive projects that serve economic and social goals, expand the participation of the private sector, and enhance its role in implementing and managing some projects, facilities and providing services”, the ministry affirmed.


At the same time, 10th Five-Year Plan projects average oil price at $48 per barrel during the years of the plan.


“The Tenth Five-Year Development Plan, which is the first operational plan for the future vision of Oman 2040, is launched, guided by the generous care and wise guidance of His Majesty Sultan Haitham bin Tarik to begin a new phase, making a shift Quality of the development process in the Sultanate”, said a statement from the Ministry of Economy”.


The plan focuses on economic diversification mechanisms and programmes and increasing the contribution of non-oil sectors and activities.


SHARE ARTICLE
arrow up
home icon