In what is expected to be another tough year for the economy, the Ministry of Finance has announced its State Budget for 2017. A total spending of RO11.7 billion and revenue of RO8.7bn is expected this year, leaving a deficit of RO3bn.
According to the Budget report, the Government is expecting revenue of RO4.45bn from crude oil, RO1.66bn from natural gas and the remainder from other sources.
It said that RO8.5bn from the total expenditure was for current spending, while RO2.665bn would be for investment expenditure.
However, an estimated deficit of RO3bn will be aggregated from international borrowing, domestic borrowing and drawings from the State General Reserve Fund.
The Government has also decided to amend the country’s Income Tax law this year. This move
will raise an estimated amount of RO400 million from companies and establishments for state coffers.
The Government also expects to generate about RO310m after increasing the fee for expatriate visas this year.
According to the Budget report, the Government is also looking to limit recruitment in the public sector during 2017 due to the economic downturn.
The 2017 Budget also revealed that certain fees for services provided by Royal Oman Police would be amended to increase revenue.
Public spending was also cut by RO200m in this year’s Budget compared with 2016.
Meanwhile, security and defence spending was expected to total RO3.34 billion, a drop of 5 per cent compared with last year.