Oman to increase government spending

Muscat: Oman plans to increase government spending in 2013 to stimulate the country’s economic growth, according to Darwish Bin Esmail Al Beloushi, Minister Responsible for Financial Affairs.

Presenting a 1.7 billion riyals (Dh16.2 billion) deficit budget for 2013, the Minister said that they would focus on development spending.

“The public expenditure, approved in the budget, will be 12.9 billion riyals, with an increase of 2.9 billion riyals over the expenditure approved for the budget of the previous year 2012, that is by [29 per cent],” he told the media.

“Our priority would be to provide the financial allocations necessary for the new employment in the different units of the state’s administrative apparatus and the Government companies and establishments,” he said.

The government has increased spending in education sector to 1.3 billion riyals while 26 million riyals are allocated for training young Omanis for job market.

He said the expenditure for the health sector is estimated at 547 million riyals, about four per cent of the total public expenditure.

About reports of Majlis Ashura members demanding 10 per cent cut in allocation for defence expenditure of about three billion riyals, he said that the safety and security of the country and its people comes at a price. “The budget allocation for defence includes, employment as well as the Royal Oman Police, who are doing a great job,” Al Beloushi pointed out.

Recovery

About Oman’s economy in 2012, he said: “For our economy, the year 2012 was a positive year at all levels and by all standards.”

He said that the Government expenditure had a direct impact in the recovery of all the economic activities and rising the levels of the consumption sector and the export and import activities.

The minister projected that the economic growth will amount to 8.3 per cent compared with targeted growth rate of seven per cent, whereas the growth of non-oil domestic product will amount to about 10.6 per cent.

The total revenues of the state for the year 2013 were estimated by about 11.2 billion riyals against 8.8 billion riyals in the budget for the year 2012, with an increase of 2.4 billion riyals, or 27 per cent. The oil revenues, calculated at $85 per barrel, constitute 84 per cent of total revenues.

In light of the estimates of the revenue and expenditure approved in the general budget, the estimated deficit of 1.7 billion represents 25 per cent of revenue and five per cent of the domestic product.