The Ministry of Finance in the Sultanate of Oman called on all government companies to rationalize spending during the current year, and to stop granting exceptional allowances to state employees, as part of its work that relates to taking more government measures to deal with the financial and economic conditions that the Sultanate is affected by the sharp decline in oil prices.
According to the ministry, the first circular issued by it relates to rationalizing operational and investment spending, as the percentage of financial reduction, is 10 per cent, representing the minimum required to amend operational budgets and financial plans approved for this year. It also indicated that it asked companies to do their utmost to target achieving a reduction in actual spending as much as possible, and not being satisfied with the 10 percent mentioned in the circular, and that the review of operating expenses include all items of expenses without exception, including salaries and employee benefits.
The second circular relates to stopping the granting of exceptional allowances to state employees, at a time when the Ministry of Finance issued a number of financial circulars during the first quarter of this year, and issued directives to take further measures to reduce public spending and review government priorities and enhance the role of the private sector and partnership with it in development.
The budget deficit is expected to widen in the Sultanate of Oman, whose major credit rating agencies rank their sovereign bonds at a "high risk" level this year, due to lower oil prices. Its economy, which is also burdened with high levels of debt, is also suffering from the consequences of the emerging coronavirus.
Source (Al-Sharq Al-Awsat newspaper, Edited)
