Friday 19 October 2018

Oman approves $32.5bn budget for 2018

MUSCAT, January 2, 2018

Oman has approved a state budget that envisages a total public expenditure of OR12.5 billion ($32.51 billion) for 2018, an increase of OR800 million from the estimated expenditure for 2017.
His Majesty Sultan Qaboos bin Said issued a Royal Decree approving Oman's budget for 2018 on Monday, said a Times of Oman report.
The total revenues are expected to reach OR9.5 billion, an increase of 3 per cent over the actual expected revenues for 2017. The budget is calculated on the basis of an oil price of $50 per barrel. 
The budget statement estimated a deficit of OR3 billion, or 10 percent of GDP during the year.
An Oman New Agency report said 84 percent of the estimated budget deficit of OR2.5 billion will be financed through external and domestic borrowing. 
According to the statement issued by the Ministry of Finance, the budget for the fiscal year 2018 aims to maintain the financial and economic stability of the state. Furthermore, it aims to raise the rate of economic growth and stability of the standard of living of citizens, said a Times of Oman report.
“About OR3.88 billion were allocated in the 2018 budget for education, health, housing and welfare sectors, which represent the largest share of the budget,” the statement said.
The Omani economy is projected to grow 3 per cent in 2018, buoyed by gradually rebounding oil prices, intensifying economic diversification efforts, and a reinvigorated investment environment, another report said.
No new taxes are envisioned in the 2018 budget, although a selective tax (Excise Tax) will be levied on certain products, such as tobacco, alcohol and fizzy drinks, said the Oman Daily Observer report.
An integrated service fee for municipal services will also be introduced, it said.

Tags: Oman | Budget |

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