Muscat: The 850 million Omani riyal (Dh8.1 billion) deficit budget for 2011 was unveiled by Oman's National Economy Minister Ahmad Bin Abdul Nabi Macki yesterday. The minister has forecast record spending at 8.13 billion riyals against the projected revenue of 7.28 billion riyals.
Macki said that the 800 million deficit of the 2010 budget was covered as oil prices were assumed in the budget at $50 per barrel (Dh183.62) and the actual oil price was at $76.
"Most of the deficit is covered despite the additional projects approved during the year and the additional fiscal approbations allocated to cover the various elements of public expenditure," he said.
He also said that part of the budget surpluses was used to repay Abu Dhabi Fund for Development loans early. The Arab Fund for Economic and Social Development was also repaid early.
The state's public revenues for fiscal year 2011 are an estimated 7.28 billion riyals compared to 6.38 billion riyals in the 2010-budget, an increase of 900 million riyals or 14 per cent.
Revenue
Oil and gas revenue constitutes 81 per cent of total revenue, while the current and capital revenue constitutes 19 per cent.
The oil revenue is computed on the basis of an average price of $58 per barrel.
Based on these assumptions, the oil revenue is expected to amount to 4.96 billion riyals with a share of total revenue of 68 per cent.
The gas revenue is estimated at 920 million riyals and its share of total revenue will reach 13 per cent. The current and capital revenue is estimated at 1.40 billion riyals, which is 19 per cent of the total revenue.
The total public expenditure for fiscal year 2011 is an estimated 8.13 billion riyals compared to 7.18 billion riyals for fiscal year 2010, which means an increase of about 950 million riyals at 13 per cent.
