S&P Global Agency (S&P Global) changed the outlook to positive, supported by the improvement in the financial situation, and affirmed its rating at ‘B+/B’, with a decrease in the budget deficit of the Sultanate of Oman.
She said that the economic and financial pressures on the Sultanate are easing as the effects of the drop in oil prices in 2020 and the Corona pandemic recede.
Low budget deficit of the Sultanate of Oman
The agency also expected a sharp decrease in the budget deficit of the Sultanate of Oman after the significant increase in the budget deficit in 2020, according to (cnbcarabia)
It added that the decline in oil prices from 2023 will lead to a deterioration of the fiscal path despite the planned reforms.
S&P Global is a publicly traded company headquartered in Rockefeller in New York City.
Read also: An Omani expert publishes important tweets about the suffering of job seekers and the economic situation: “We will rise again”
It is also the parent company of Standard & Poor’s and JD Power and Associates.
Last month, Oman began reaping the benefits of fiscal reforms and debt relief, which resulted in a record reduction in the budget deficit.
According to Omani accounts, the Sultanate of Oman paid 1.4 billion Omani riyals of its debts in the first seven months of this year.
Sultanate of Oman budget
In early September, the Omani Ministry of Finance said that a budget deficit of the Sultanate of Oman was recorded on an annual basis of 1.2 billion Omani riyals ($3.13 billion) last July, as the country began reaping the fruits of reforms to control financial conditions.
And the budget deficit of the Sultanate of Oman was recorded at the end of last July, by 22.2% from the actual deficit recorded in 2020, as a result of the decline as a result of the rise in state revenues and the decline in public spending.
The Sultanate’s revenues increased slightly by 0.5% in the twelve months ending last July, compared to the same period in 2020.
While oil revenues rose 3.4% in light of the recovery in oil prices, after a decline driven by the Corona virus in 2020.
The Omani Finance indicated that the current revenues witnessed an increase of 34.9% as a result of collecting investment dividends from the Oman Investment Authority, amounting to OMR613.3 million.
The Ministry of Finance said in a statement at the time that while the financial situation continues to be controlled, public spending continues to decline.
And total spending fell 4.7% in the twelve months ending last July, compared to the same period a year ago.
The oil-producing Gulf state began a series of measures last year to reform its debt-burdened public finances and asked the International Monetary Fund for technical assistance on its debt strategy.
value added tax
Reforms, which included the introduction of a value-added tax, helped Oman raise billions of dollars in bonds and loans this year despite a huge 2020 deficit of 19.3% of GDP caused by low oil prices and the coronavirus crisis.
According to the statement issued at the time, the Ministry of Economy launched the economic stimulus initiative last month to stimulate the small and medium enterprise sector in partnership with the private sector, according to the German news agency.
The stimulus initiative aims to support these institutions in general, and those operating in the targeted economic diversification sectors in particular, by supporting their recovery, expanding innovative solutions for their products, and marketing their businesses and services.
Follow the latest news via: Google news»
And watch all the new on our channel in YOUTUBE»