Sultanate’s deficit decreases by more than 50 per cent in 2019

Muscat: A better performing economy has improved Oman’s financial standing in the first half of 2019, according to the Government Communications centre (GC).
In a positive sign for Oman's economy, the government announced that the Sultanate had witnessed a 53 percent drop in the state budget deficit in the first half of 2019. According to Government Communication (GC) data, the budget deficit stood at OMR 0.66 billion (660 million) compared to OMR1.4 billion for the same period in 2018.
The centre released a statement to convey that Oman’s financial health and the shrinking deficit thanks to the government’s efforts, which it labelled as “necessary”.
A statement by the GC said: “The Sultanate’s financial performance has improved during the first half of the ongoing year in light of average oil prices stabilising and the continuation of the necessary procedures undertaken by the government to ensure that the financial and economic situation is sustainable.”
Oman made over 11 percent more in revenue in the first half of 2019 compared to the first half of 2018, according to the centre, and at the same time, its spending decreased by nearly three percent, which meant that the country managed to shrink its deficit by half.
According to the GC, “Oman’s oil revenues increased by five percent and its revenue from gas increased by 9.3 percent. In addition, Oman’s revenue from income tax on companies has increased by 45.1 percent, and its other forms of diversified revenues have increased by a further 42 percent. During the same point, capital spending on civil ministries has decreased by 73.3 percent and its developmental spending for ministries has gone down by 15.1 percent. Furthermore, general contributions and subsidies have decreased by 18.1 percent, which led to a 53 percent decrease in the deficit.”
The GC also compared Oman’s performance in depth in half-year periods starting from 2016 up until June 2019, showing how Oman has managed to cut its deficit consistently almost by half each year since 2016.
According to the statement, “Oman had spent OMR6.6 billion in the first half of 2016, compared to 3.1 in revenue, resulting in an OMR3.5 billion deficit. By June 2017, Oman had spent OMR6.4 billion and made OMR4 billion, resulting in an OMR2.4 billion deficit. In 2018, Oman had spent OMR6.3 billion and made OMR4.9 billion, resulting in an OMR1.4 billion deficit. in 2019, Oman spent OMR6.1 billion by June and made OMR5.5 billion in the same period, which shrank the deficit for the half-year period to 0.66 billion.”