Monday 23 / December / 2024
Muscat: The Ministry of Finance has issued two financial circulars (No. 11 & 12), the first of which deals with rationalisation of spending in government companies through fiscal year 2020 and the second relates to the lifting of exceptional bonus granted to state officials.
The Ministry said that, within the context of its work associated with steps to undertake further government measures to handle the financial and economic developments which affect the Sultanate in view of the slump in oil prices, it issued Circular No. 11 which requires government companies to implement a 10 per cent cut in operational and investment spending, which is the base minimum percentage needed to adjust budget plans for this year.
Circular (No. 11) also urged the firms to exert maximum efforts targeting utmost squeezing of actual spending, instead of merely implementing the 10 per cent stated in the circular.
Also, the companies are required to carry out full review of elements of spending, including salaries, privileges of employees, the situation of vacant grades and spending on studies (i.e. consultancy, engineering, field studies), irrespective of the nature of these elements of spending (whether they come under capital or operational spending allocations).
The Ministry called upon all companies to cooperate and stick to the circular’s instructions to serve public interest.
The second circular (No. 12/2020) deals with the cessation of exceptional bonus to all state employees in all government units in implementation of the Royal directives of His Majesty Sultan Haitham Bin Tarik, particularly retired employees.
The statement said that the instructions, which seek to put to practice the Royal directives, are binding upon all ministries, public authorities, institutions and establishments, including all of the State’s civil, military and security apparatuses.
