Paring deficit 2019’s priority

The Ministry of Finance (MOF) has issued guidelines to all the ministries, government departments and public sector institutions for the submission of finance proposals for the budget 2019, reported the Oman newspaper, sister publication of the Observer.

As per the guidelines, all the government and public sector units, while submitting their financial plans, should not increase the scope of their budget and instead focus on ways to rationalise expenditure and rearrange priorities in line with the available financial resources.

The main focus while preparing the general budget 2019 will be on reducing the deficit (keeping it within the safe limits), reducing the level of public debt and rationalising public expenditure, among others.

The ministry has urged the government and other public sector units about the need to avoid compromising on basic priority areas for citizens such as health, education, electricity, water and social security.

At the same time, they should continue their focus on diversifying the sources of income and increasing the contribution of non-oil revenues.

To achieve these targets, especially creating jobs for citizens, the government will need to achieve an economic growth of not less than three per cent in the Ninth Fiveyear Development Plan.

At the same time, priority will be given to implementation of the projects crucial for the overall economic development.

The government and other public sector units should raise the efficiency of the state-owned economic institutions, enhance their role in the national economy and expand the scope of private sector participation in the implementation and management of some projects, facilities and businesses that will improve the credit rating of the Sultanate.