Oman’s Ministry of Finance has ordered a further reduction of 5 per cent to the budgets of all government entities and ministries.
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In Financial Publication No. 16 of 2020, the Ministry outlined the necessity of reducing government and military budgets “to confront the effects of low oil prices that lead to financial savings in spending, and to reduce the budget deficit.”
The circular stated that “instructions have been issued for an additional 5 per cent reduction in the approved budget for all civil, military, and security units for the year 2020, bringing the total reduction to 10 per cent.”
The Ministry of Finance has also instructed real estate owners whose premises are rented by government units to negotiate to reduce their rents by at least 10 per cent.