11% of Oman’s budget spendings in 2021 goes to debt service

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هذه الصفحة متوفرة بهذه اللغة: العربية

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2 January 2021

Muscat (WAF) – Oman debt service is the third most expensive item in the state budget for 2021. Following the civil ministries’ expenditures representing 37.5% of the expenses, and the security and defence expenditures that constitute 27.3% Of the total spending, Oman’s budget details issued today by the Ministry of Finance showed.

Oman’s 2021 budget estimates total revenues at RO8.6 billion, an increase of 1.65% compared to the revised estimations for 2020, of RO8.46 billion, following the Coronavirus pandemic’s impact on the economy’s projections.

The oil-dependent Gulf country has revised the estimations for 2020 to RO12.66 billion in expenditures and a deficit of RO4.2 billion.

The state budget for 2021, approved yesterday by Sultan Haitham bin Tariq, estimates the country’s spendings to amount to RO10.8 billion, decreasing by 14.7% compared to the revised estimations of RO12.6 billion.

In 2021’s budget, civil ministries’ expenditures amount to about RO4 billion, RO2.9 billion goes to security and defence expenses, RO1.2 billion for debt service, and RO900 million for development expenditures.

The government continues to subsidise essential services with RO775 million. Electricity subsidy is estimated at RO500 million, drinking water subsidy is RO90 million, the contribution to wastewater services and waste management will amount to RO86 million and RO64 million respectively, and fuel subsidy valued at RO35 million.

The 2021 budget – which is the first budget of Oman Vision 2040 – adds a special provision for debt repayment allocations for the first time, with RO150 million in 2021.

Current expenditures represented in salaries and wages for government units still represent the lion’s share of public spending, constituting 80% of current spending.

Oman has built its budget for the current year based on oil prices at an average of $45 per barrel. Yet, the country requires an average price of $ 80 per barrel to breakeven, the Secretary-General of the Ministry of Finance said last December in an interview with the state TV of the Sultanate. (Details)