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Oman Budget 2020

Oman budget 2020 Oman Budget 2020

Oman State Budget Analysis

Oman revealed its 2020 budget on Wednesday 1 January. Total spending is budgeted at OMR 13.2 billion (USD 34.3 billion), an increase of 2% against the previous year’s budget. Revenues are estimated to grow by 6% to OMR 10.7 billion (USD 27.8 billion), leaving a budget deficit of OMR 2.5 billion (USD 6.5 billion). The deficit is 8% of the GDP for 2020, which is targeted to grow by 3%.

This year’s budget is based on an oil price of USD $58/bbl, which is the same as budgeted for 2019. The average realized price of oil for 2019 was USD $64/bbl.

Our Budget Newsletter analyzes the State Budget and the measures proposed to grow the economy in a fiscally sustainable manner.

Key highlights

  • The 2020 budget demonstrates the government’s continued focus on controlling deficit, which is expected to decline by 11% from OMR 2.8 billion budgeted in 2019 to OMR 2.5 billion in 2020.
  • Debt as a proportion of GDP is expected to rise but remain below 60%.
  • Oil and gas revenues still constitute a significant portion of government revenues (72%) , although the proportion is slowly declining.
  • Expenditure is kept under control with a budgeted increase of only 2%, attributable to an increase in interest cost on borrowings.
  • Investment (development) spending, comprising both government projects and state owned enterprise projects, is budgeted at OMR 5.3 billion.
  • Welfare expenditure continues to receive the largest allocation of government spending.