Government agencies must cut budget by 5 per cent : Finance Council

Business Thursday 19/March/2020 19:27 PM
By: Times News Service
Government agencies must cut budget by 5 per cent : Finance Council

Muscat: The Financial Affairs and Energy Resources Council has approved a number of decisions in the context of ensuring necessary measures and precautions to mitigate the effects of the coronavirus outbreak and the sharp decline in global oil prices.

The decisions are as follows:

1- The Ministries, civil, military and security government agencies must commit to reducing their budget by 5%.

2- A comprehensive review of public spending items aimed at achieving an additional reduction.

3- Conducting a review of the support items and government capital, operating, and administrative companies ’expenses, including financial and human resources regulations.

4- Emphasizing the importance of government companies commitment to the Council’s decision in accordance with Financial Circular No. (2/2020) regarding controls for establishing new government companies.

5- Approval of financial allocations to enhance food reserve stocks and the financial requirements for preventive measures taken to counter the spread of the new Corona virus.

6- Supporting the loan portfolio of Al Raffd Fund to increase the number of loans provided to small and medium enterprises.

7- Study and preparation of a draft public debt law.

8- The Council confirmed that it will follow up on the commitment of government units to implement these measures and evaluate the actual performance of the state’s general budget every three months.