The budget deficit of the Sultanate of Oman during the first quarter of this year reached 751 million riyals (equivalent to about two billion dollars), against the background of a decline in revenues by about 30 percent due to the Covid-19 pandemic and the decline in oil prices. On the other hand, public spending declined by about 3 percent in the first quarter on an annual basis due to cost containment efforts in government units.
The Sultanate of Oman intends to impose an income tax to be paid by high-income earners, starting next year, as part of plans to reduce the deficit.
The rating agency Standard & Poor's has affirmed the Sultanate of Oman, below the degree worthy of investment, with a stable outlook, in light of expectations of easing financial pressures this year. The decline in revenues in the first quarter is due to the decline in the oil price and the restructuring of some government investments, with expectations that the financial performance in the second quarter will be much better, not only in terms of oil price and the level of production, the restructuring of the government apparatus will be reflected in expenditures, in addition to the start of the implementation of value-added tax in mid-April, which is estimated to provide government revenues with 300 million Omani riyals in 2021, or about $ 780 million, 400 compared to one million riyals in 2022.
Source (Al-Arabiya.net, Edited)
