Der Finanzminister des Sultanats Oman, Darwish Bin Ismail Al-Balushi, kündigte Staatsausgaben in Höhe von etwa 25,7 Milliarden Euro für das Jahr 2014 an. 17,5 Milliarden Euro werden für die Bereiche Bildung, Gesundheit, Wohnungsbau, Ausbildung und soziale Dienstleistungen eingeplant.
The government expenditure and revenue are estimated at OMR13.5 billion and OMR11.7 billion, respectively, leaving an anticipated deficit of OMR1.8 billion for 2014. Total allocation for the Eighth Five Year Plan by the end of 2013 surged ahead by OMR17 billion OMR59 billion, from OMR43 billion, due to additional spending in the first three years of the plan period. There are 6,500 projects for implementation during the Eighth Five Year Plan between 2011 and 2015. The minister also noted that the first phase of the national railway project, which will start this year, is estimated to cost OMR1 billion.Oman's 2014 budget leaves an anticipated deficit of OMR1.8b
The estimated public expenditure for the current year is up by five per cent over last year's budget proposal, while total revenue is projected to grow by 4.5 per cent over last year's revenue estimate, said Darwish bin Ismail Ali Al Balushi, minister responsible for financial affairs.
Addressing the media to announce the state budget here on Thursday, Al Balushi said the deficit, calculated on the basis of an assumed oil price of $85 per barrel, is projected at OMR1.8 billion, which constitutes 15 per cent of revenue and 6 per cent of the gross domestic product (GDP). The deficit will be covered by way net foreign borrowing to the tune of OMR200 million, net domestic borrowing of OMR200 million, OMR1 billion surplus from 2012 and OMR400 million from general reserves.
The minister, who described this year's budget as the biggest-ever budget in Oman's history, noted that the recent standardisation of grades in different ministries would incur an additional cost of OMR800-900 million for the government, which is not included in the budget estimate. The Ministry of Finance is yet to calculate the amount and once that is complete, the budget expenditure will be revised. "The budget will support growth and stimulate the private sector," he added.
Also, he said the actual budget surplus for 2013 would be ready only by the end of February as the ministry is yet to get a clear picture on expenditure, due to lengthy cycle in payments. "Till the end of November 2013, the budget surplus was OMR350 million, which is not a real picture of the surplus," added the minister.
Al Balushi said the current expenditure of OMR8.7 billion represents 65 per cent of total public expenditure, while salaries and wages at OMR5 billion constitutes 37 per cent of total public spending.
The minister also noted that the investment expenditure is estimated at OMR3.2 billion, which is 24 per cent of the overall public expenditure and is mainly for covering expenditure on development projects and capital expenditure for developing oil and gas fields.
The minister said oil revenue represents 83 per cent of total revenue, while non-oil revenue forms the remaining 17 per cent of which almost 50 per cent is from tax revenue and fees. Crude oil revenue has been calculated on the basis of a daily average oil production of 945,000 barrels in 2014.
The rise in global demand for oil and reduced supplies played a role in supporting oil prices in 2013 where the average price of Omani oil was about $106 per barrel. "Global indicators also suggest that oil prices will preserve their current levels in 2014," he noted.
The minister also said that the state budget includes allocations of OMR9.2 billion to meet social sectors such as education, healthcare, housing, training, subsidy and other social services. This is against OMR8.7 billion in last year's budget, a growth of OMR465 million or 5.3 per cent. Giving a break-up of different social sectors, he said the education sector, with an estimated expenditure of OMR2.6 billion, constitutes 18.6 per cent of the total public expenditure, training programmes need OMR95 million, health sector expenditure amounts to OMR1.3 billion and social security and welfare will have another OMR133 million to cover pensions and social welfare. The housing sector, with an expenditure of OMR2.8 billion, is another major allocation.
Subsidies and exemptions constitute OMR1.6 billion (which is almost 10 per cent of total government expenditure) mainly include subsidies for interest on housing loans, electricity, water, fuel and some basic food items.Eighth plan allocation surges
The investment projects, which the government plans to implement directly or through government-owned companies, provide opportunities to stimulate private sector activities in the Sultanate, as well as to generate a lot of employment opportunities. Some of the important projects include the refinery and petrochemical project at Duqm Economic Zone, Sohar refinery expansion project, a project for assembling and manufacturing bus in the Sultanate in cooperation with Qatari Transportation Company, completion of Oman exhibition centre and several other tourism projects. Railway's first phase to cost OMR1b.
Also, road projects, at a cost of OMR807 million, include dualisation of Bidbid-Sur road, Barka-Nakhal road, the construction of Diba-Lima-Khasab as well as the first phase of the dualisation of Adam Thumrait road. Health sector projects, with a cost amounting to OMR384 million, is another major investment.
The budget allocation for healthcare projects is estimated at OMR384 million and the main hospitals planned by the government this year include Muscat, Suwaiq and Salalah.