Oman cuts spending in light of lower oil prices

1/3/2016 1:56:44 AM

(MENAFN- Muscat Daily) Muscat-

Oman will cut spending this year by 15.6 per cent in the face of lower oil prices but still face a huge deficit after posting one in 2015.

Spending is projected at RO11.9bn in 2016 compared with RO14.1bn in 2015 a statement from H E Darwish al Balushi Minister Responsible for financial Affairs said on Friday.

Revenue is projected at RO8.6bn down a massive 26 per cent from RO11.6bn in 2015 resulting in a deficit of RO3.3bn said the statement cited by the official ONA news agency.

Oman's deficit last year was RO4.5bn.

Gulf states have been hit hard by a cash crunch due to a 65-per cent drop in oil prices since June 2014.

Most of them have introduced austerity measures and Oman said on Wednesday it has decided a series of measures to boost non-oil revenues.

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