Falling oil prices will not directly affect state spending in Oman, according to the country’s minister for financial affairs.
“There are no specific plans to cut public expenditure at this time. We are observing the situation closely and the oil prices are still fluctuating,” Darwish al-Balushi told news agency Reuters.
Al-Balushi revealed that Oman’s budget is based on a projected oil price of at least $75 per barrel. With the price of crude now dipping down to around $50 per barrel, Oman has been left with a budget deficit of $6.5bn. The deficit represents Oman’s biggest fiscal gap since at least 1990.
“When needed, steps will be taken to maintain the economy’s performance,” he added without giving details.
Al-Balushi did not say on Wednesday which revenue-raising steps the country intended to adopt. Last month, Omani cement firms said the government would double the natural gas charges which they pay. A proposal to tax foreign workers’ remittances was rejected.
