Oman's spending for 9th five-year plan to reach 66b Omani riyals
The total public spending in Oman's ninth five-year plan (2016- 2020) is expected to reach 66 billion Omani riyals (Dh627.6 billion), according to the latest figures of the Ministry of Finance.
The total revenue is expected to touch 51.1 billion riyals, including 36 billion riyals and 665 million riyals from the oil and gas sector and 14 billion riyals and 435 million riyals from non-oil sources, reported Oman daily newspaper.
The Ministry of Finance explained that the five-year plan has allocated 15 billion riyals and 160 million riyals for government investment over the next five years, which aims at achieving an annual growth rate of 3 per cent during the plan period.
The plan anticipates the average GDP (gross domestic product) growth to reach 28.6 billion riyals for the ninth five-year plan, compared to 24.6 billion riyals during the eighth five-year plan.
Moreover, strong growth in the nonoil activities is expected as Oman is working hard to diversify its economy amid the oil slide, according to the Ministry of Finance.
The average annual targeted investment for the plan, which includes government investments in the private sector, is expected to reach 28 per cent of the total GDP, while the total investment of the plan stands at 41 billion riyals, compared to 38 billion eighth five-year plan.
Meanwhile, the 2016 General Budget focuses heavily on austerity measures including ministers' cars.
The new budget projects 3.3 billion Omani riyals in deficit spending for 2016, which it says, it will try to reduce by improving the non-oil revenues as well as cutting expenditure. Oman posted a budget deficit of 4.5 billion riyals in 2015 as revenues declined by more than 50 per cent. The 2016 general budget aims to stimulate economic growth through continued development spending on economic and social priority projects and to provide the necessary support to further private sector investments.