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REVENUES TO TOTAL $26bn

Oman's budget sees $33.48bn spending in 2019

MUSCAT, January 2, 2019

Oman's 2019 budget, announced yesterday, envisages total public spending of about RO12.9 billion ($33.48 billion), an increase of RO400 million or 3 per cent compared with the budgeted figures of 2018.

Oman’s His Majesty Sultan Qaboos bin Said has issued a decree authorising the ratification of the state budget for the fiscal year 2019.

The estimated total revenues of RO10.1 billion, an increase of 6% as compared to the estimated revenue for 2018, is calculated on a base oil price of $58 per barrel,  reported Times of Oman.

It is estimated that the deficit of the budget of 2019 is about RO2.8 billion, or 9 per cent of Gross Domestic Product (GDP), where 86 per cent of the budget deficit will be financed through external and domestic borrowing, while the rest of the deficit will be financed through the withdrawal of reserves, the report added.

According to the preliminary reports, overall public spending totalled RO13.2 billion in 2018 compared with a budgeted figure of RO12.5 billion, a 6 per cent increase. This is mainly attributed to the rise in investment spending over development projects, increased expenditures of some government units to meet necessary and urgent needs, high subsidy costs of the electricity sector and higher costs of public debt servicing, said an Oman News Agency report.      

The spending estimated in 2019 budget for basic services, such as education, health care, housing and social welfare accounted for 39% of public spending, which represents the largest portion of the budget.
 
The investment spending is estimated at RO3.7 billion in 2019, including RO1.2 billion allocated for infrastructure projects which are overseen by various government units; and an amount of RO2.5 billion to be utilised by some state-owned-enterprises (SOEs) for the implementation of projects in industrial and services sectors.
 
The government continues to implement the Social Housing Scheme and Housing Aid Programme for eligible citizens. An amount of RO90 million has been allocated for this purpose, which includes an amount of RO60 million assigned for housing loans provided by Oman Housing Bank, while the remaining RO30 million is allocated for housing and development loans.
 
Out of the expected total revenue of RO10.1 billion, oil and gas revenues will account for RO7.4 billion, representing 74% of the total revenue. Non-oil revenues are estimated at RO2.7 billion, 26% of total revenue.



Tags: Oman | Budget |

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