Plummeting oil income pushed Oman’s state budget into a OMR323mn ($840mn) deficit in October, swinging from an OMR54mn surplus the year before, amid high base effects, the statistics office reported.
Total revenue shank 33% y/y to OMR691mn whereas spending grew 3% y/y to OMR1.014bn in October.
Oman is set to record fiscal and current account deficits over the next four years, compared with surpluses in the previous four years on lower income and higher spending. Oman is selling sovereign bonds to bridge the expected budget gap.
Net oil proceeds dropped 48% y/y to OMR435mn in October, equalling to 63% of total state revenue.
Current spending jumped 25% y/y to OMR590mn in October, accounting for 58% of the total. Capital spending also climbed 22% y/y to OMR295mn amid government efforts to spur economic growth and the non-hydrocarbons sector.
Actual expenditures under settlement halved y/y to OMR50mn in October.
NOTE: Oman’s finance ministry is using the terminology “Actual expenditures under settlement” which sum is deducted from the total, or gross, budget surplus.
US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more
US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more
Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more