Oman has planned to spend $4.6bn (OMR1.79bn) on oil and gas production in 2016, according to its recently announced budget for the year.
The budget for energy production is estimated to be 14% less than the 2015 figure. The Sultanate’s Ministry of Finance says the revised budget implies reduction in the production cost per barrel of oil and one gas unit.
The ministry on Saturday issued a statement on the key features of State Budget 2016, which was ratified by Royal Decree 2/2016.
It said oil continues to be the most important contributor to the budget. ‘It is imperative to take measures to maintain Oman’s financial stability’, the statement said.
Oman’s budget for next year, aimed at covering an expected shortfall in the next year, sees it raising oil product prices, cut expenditures, boost non-oil sector, and raise corporate income taxes.
According to an official statement, Oman will cut down on government spending, develop non-oil revenues by raising corporate income tax, and revise and raise fees payable against government services, as well as revise the prices of petroleum products (oil products) ‘in a manner that corresponds with global prices of these products with effect from mid-January 2016’.
