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.
This is in an effort for the Sultanate’s government to enhance the element of financial sustainability.
The Sultanate of Oman is repaying 1.4 billion Omani riyals of its debts in the first seven months of this year in an effort to enhance the element of financial sustainability. pic.twitter.com/AJ7Ea6pc5T
– Al Zajel Oman Network (@zajel_oman) September 21, 2021
In early September, the Omani Ministry of Finance said that the Sultanate of Oman recorded a budget deficit 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 state’s general budget deficit at the end of last July recorded a decrease of 22.2% from the actual deficit recorded in 2020, as a result of the decrease as a result of the increase in state revenues and the decrease in public spending.
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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.
Oman Investment Authority
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.
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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-laden 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.