Oman reviews plans to boost non-oil revenue, cut spending in 2018

Muscat: Measures to further improve non-oil revenues and cut expenditure were discussed at a high-level meeting on Wednesday.
The Financial Affairs and Energy Resources Council held its 4th meeting of the year on Wednesday under the chairmanship of Darwish bin Ismail bin Ali Al Balushi, Minister Responsible for Financial Affairs and Deputy Chairman of Financial Affairs and Energy Resources Council.
The Council reviewed the state financial position report as on July 31, 2017 and some financial performance indicators for the first seven months of the year including the actual and realised oil prices, the actual revenues and the expenditure levels.
The report showed that the budget deficit as of the end of July 2017 stood at OMR2.6 billion.
The Council reviewed the initial estimates for the state budget for the fiscal year 2018, as well as the bases and assumption on which estimates will be made as the financial position of the state is affected by the oil price drop.
The Council discussed a number of measures that aim at improving non-oil revenues and reducing the expenditure to curtail the growing state budget deficit.
These measures will be presented to Council at its next meeting after completing its study with the relevant authorities to prepare for its approval at the draft state budget for the fiscal year 2018. The Council also reviewed the performance of the State Reserve Fund and Oman Investment Fund as of June 2017.
It watched a presentation on the outcomes of the study prepared on the national energy strategy including the strategy for diversifying sources of energy, the future trends to ensure electricity supplies up to 2030 and the measures to be taken. The Council approved the recommendations of the study including making 10 per cent at minimum for renewable energy by 2025. The Council reviewed a circular on the developments of the global oil market which pointed out to a constant growth of the world demand for oil at the second half of 2017, but with slow pace.
The circular also covered the future of oil after 2040 in light of technological development witnessed by the world in transportation means. The Council also reviewed a number of other issues and took appropriate decisions in their regard.