Sultan of Oman, His Majesty Sultan Haitham bin Tarik has issued a royal decree to approve the nation’s 2021 general budget with a notable decrease in public spending.
Reports suggest that the 2021 Oman is expected to have a budget deficit of $5.82 billion with a projected expenditure amounting to $28.26 billion for the year while revenue from various sources is expected to be at $22.44 billion.
At $28.26 billion Oman’s total estimated revenue (calculated under the assumption of oil prices remaining at $45 per barrel) will have a 19 percent decrease when compared to the numbers proposed in the 2020 budget.
The country also expected to decrease its public spending to $28.26 billion, a drop of 14 percent when compared to the previous national budget.
The sultanate would strive to keep its 2021 budget deficit at $5.82 billion which will be representing 8 percent of its national gross domestic product (GDP) for the period. Oman assumes to manage the deficit by financing 73 percent of the shortfall through external and domestic borrowing while the rest of the deficit will have to support by the withdrawal of its national reserves.
The country views its current year’s public spending to decrease by $32.73 billion when compared to the projections it has made in the 2020 national budget.
The Sultan has also issued the royal for approving the Tenth Five-Year Development Plan 2021-2025.
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