Oman erhöht Bildungsausgaben

Ahmed bin Abdulnabi Macki, Wirtschaftsminister und stellvertretender Vorsitzender des Financial Affairs and Energy Resources Council, gab die Staatsausgaben des Oman 2008 bekannt. Die Investitionen in den Bereichen Bildung und Gesundheit sollen um 17 Prozent höher als 2007 sein.


Macki unveils growth-oriented budget
ONA; Wednesday, January 02, 2008

MUSCAT — Ahmed bin Abdulnabi Macki, minister of national economy and deputy chairman of the Financial Affairs and Energy Resources Council, has announced that the state’s general revenues for the year 2008 are estimated at about RO5,400 million as against RO4,490 million in the budget of the fiscal year 2007, i.e. an increase by RO910 million or 20 per cent.

Oil and gas revenues constitute 78 per cent of the total revenues whereas the current and capital revenues constitute 22 per cent thereof, he added.

During a press conference held at the Ministry of Finance yesterday to unveil the State General Budget for 2008, Macki pointed out that the oil revenues were estimated on the assumption of an average oil price of $45 per barrel and production of 790,000 barrels per day. According to these assumptions, the oil revenues are estimated to be about RO3,610 million, i.e, 67 per cent of the state’s total revenues.

Macki pointed out that the contribution of the gas revenues of RO620 million shall constitute 11 per cent thereof. The current and capital revenues were estimated to reach about RO1,170 million, i.e, an increase by 26 per cent over 2007 budget or 22 per cent of the total revenues.

As for the gross expenditure for 2008, the total expenditure during the fiscal year 2008 was estimated at about RO5,800 million as against RO4,890 million in the fiscal year 2007, i.e, an increase by RO910 million or 19 per cent.

This total expenditure shall cover the following elements and constituents of expenditure:

The current expenditures of the government civil ministries and units were estimated at about RO1,925 million, i.e, with an increase by RO305 million, which represents 19 per cent over the estimates of the previous year 2007.

The current expenditures represent 33 per cent of the total general expenditures. These appropriations include coverage of the basic government services, the operational expenses of the government ministries and units, expansion of the educational and health services, expenses of operating the new projects and the cost of promoting civil service employees with seniority since 2002.

Macki pointed out that the share of the health and the educational sectors amounted to 49 per cent of the total current expenditures.

The current appropriations for the education and health sectors amounted to RO710 million representing 37 per cent of the total current expenditures of the civil ministries, i.e, an increase by RO101 million or 17 per cent over the approved budget for the year 2007. These appropriations are apart from the approbations allocated for this sector in the development budget in the amount of RO63 million, he added.

The share of the health sector amounted to RO228 million, which represents 12 per cent of the total current expenditures of the civil ministries, i.e, an increase by RO29 million or 15 per cent over the 2007 approved budget, he added.

An amount of RO30 million was allocated to cover the total of 48,499 cases under the umbrella of the social security system, he continued.

Estimates for the expenses of the production of oil and gas amounted to RO1,350 million, which represents 23 per cent of the total general expenditure or an increase by 12 per cent over the approved budget for the year 2007, he continued.

Allocations estimated under the development budget amounted to RO725 million. This includes an increase by 45 per cent over the 2007 approved budget. These allocations cover spending on the continuing, as well as, the new development projects listed in the Seventh Five-Year Plan (2006-2010) in the different sectors, he added.

Estimates of subsidy to the electricity sector amount to RO118 million to cover subsidy allocated to the electricity sector against purchasing power from companies producing electricity. This subsidy constitutes the difference between the cost of purchasing power and the anticipated returns from electricity sales.

This, in addition to the subsidy to the water sector of RO61 million to cover the value of the water purchase from Al Ghubra, Barka, Sur plants and others, he furthered.

Estimates of the budget allocated for participations amounted to about RO249 million, of which an amount of RO236 million will be used for financing projects implemented by Oman Wastewater Company, Salalah Sanitary Drainage Services Company, Oman Oil Company, Oman Tourism Development Company, Majis Industrial Services Company and Salalah Free Zone Company, he continued.

In the light of the revenues and expenditures estimates included in the general budget, the estimated deficit for the year 2008, based on the oil price of $45, amounts to RO400 million, i.e, 7 per cent of the revenues and 3 per cent of the gross domestic product (GDP), similar to the estimated deficit in the budget of the previous year 2007.

However, the percentage of the deficit from the total revenues decreased to 7 per cent against 9 per cent in the year 2007. This is considered relatively low, as to its percentage from revenues or the domestic product. It is also considered among the economically reasonable and acceptable rates. However, the deficit may be covered through withdrawal from the contingencies reserves approbation, in case no excess over the budget-estimated revenues is realised, he continued.

One of the positive indicators in the budget of the year 2008 is the decline in the percentage of the deficit from the total revenues and from the domestic product. In addition to that, the 2008 budget is taking into consideration the new obligations emerging from the expansion in the government services in the different sectors and areas of development. It also encourages and motivates the continuation of the good economic growth that has been achieved by the national economy during these years. The 2008 budget also reflects the government’s commitment towards building a modern national economy with renewable competitive capabilities that can go along with the current fast transformations taking place in the international arena. This budget also shows the determination of the Sultanate to continue advancement towards providing all requirements of the present times and preparing for the future requisites, he continued.

The total approbation’s for the new projects to be implemented during 2008 amounted to about RO425 million, so as to implement a number of development projects. In addition to that a number of other service projects will be implemented during 2008, besides the completion of the ongoing projects, he continued.

As to the performance of the national economy in the year 2008, and in the light of the expected increase in the growth rates of the oil production, the continuance of its high prices thereof and the rise in the growth rate of the government expenditure, in addition to the implementation of some projects as planned, the performance of the national economy will continue its growth at the level of all economic sectors and activities, Macki forecasts.

The original total approbations for civil ministries development programme in the Seventh Five-Year Development Plan, which is considered the main drive of the plan and its executive tool, amounted to about RO3,016 million.

Since the start of the implementation of the plan and till the end of November 2007, a group of additional projects was approved in response to the royal directives during the annual royal tours, which emphasised on defining the citizens’ urgent needs in the wilayats and regions and working towards their realisation.

Also, to implement a number of developmental projects in the light of the attention accorded by the government to the development programmes and the completion of the basic infrastructure projects, in addition to the additional allocations for the projects of repairing the infrastructure affected by the adverse weather conditions which hit the Sultanate, he added.

The total of these additions amounted to RO2,357 million and, therefore, the development programme approbations increased by 78 per cent to reach about RO5,373 million, as a result of the additions approved under the plan, he continued.

As for the sectors that received the additions, Macki said that RO730 million additional appropriations has been marshalled for road sector to cover RO68 million for paving Hasik/Al Shwimiah Road, Al Amerat/Quriyat dual-carriageway by RO66 million, Salalah/Thumrait dual-carriageway by RO48 million, support of Muscat International Airport flyover bridge project by RO6 million, paving of internal roads in Salalah by RO20 million, RO50 million to tackle traffic congestions in Muscat governorate and raise roads’ efficiency at contingency conditions of rainfall, promoting the project of paving the Express Southern Highway Al Qurum/Naseem Park by RO5 million, and promoting the project of Al Muladdah/Al Rustaq dual-carriageway by RO7 million, he continued.

An amount of RO285 million was allocated for the projects of repairing infrastructure affected by the adverse weather conditions which was approved by the ministerial committee formed as per the royal directives for repairing the affected infrastructure, up to the end of this year, he continued.

Another approbations are expected to be approved at the beginning of the current year for the completion of repairing the infrastructure in this respect, especially the housing sector. The cost of the projects of repairing the damages incurred by roads, due to the adverse weather conditions, which hit the Sultanate, amounted to RO188 million including the asphalt and unpaved roads in the Al Batinah and the Al Sharqiyah regions by RO30 million, re-paving of Wadi Adai/Al Amerat Road by RO57 million rehabilitation of Al Bahri Road in Seeb and constructing bridges by RO30 million, rehabilitation of Al Qurum/Al Sarooj Road by RO4 million, repairing and maintenance of the service roads, lighting and landscaping by RO65 million, paving internal (service) roads projects in the different regions of the Sultanate by RO212 million, he added.

Macki also pointed out that additional appropriations include RO365 million for the ports sector including marine works project at Al Duqum Port by RO199 million, construction of quays for the third phase of Sohar Industrial Port by RO66 million, RO68 million for purchasing five ferry vessels — two for the north of Sultanate, two for the south and one for Masirah — expansion and development of the general cargo quays and construction of one quay for fluids for Salalah Methanol Project in Salalah Port by RO17 million, establishment of Shannah Harbour in the Al Wusta region by RO10 million.

Macki also said that there would be RO290 million additional appropriations for gas sector including gas supply to Al Duqum Industrial Estate by RO55 million, purchasing compressors and construction of gas pumping stations in Al Buraimi and Fahud for gas supply to Sohar Industrial Area by RO76 million, gas supply to the methanol plant and the new electricity station in Salalah by RO20 million and purchasing and establishment of NIMR (Al Wusta) gas compression station by RO20 million, he added.

Macki also pointed out that there would be RO66 million additional appropriations for housing sector as work commenced during 2007 on construction of about 1,625 new housing units for the citizens in the different areas of the Sultanate, thus raising the housing units, in which work had started during the Seventh Plan, to about 4,328.

Macki said that there be RO134 million for ports sector including RO111 million for consultancy studies, designing and supervision for improving, developing and renewing of Muscat International Airport and Salalah Airport.

Regarding the plan for developing Muscat and Salalah International Airports, Macki pointed out that the Ministry of Transport and Communications and the ministerial committee commissioned for improving the two airports were now reviewing the designs and the detailed maps, and preparing the documentation according to the preset master plan. It is expected during the first half of the current year when tenders for the new runway will be invited. Drawing up the designs for the airport new building is also underway. Macki hoped that its tender invitation would take place before the year-end.

The appropriations also include RO17 million for the consultancy studies, designing and supervision for the construction of a number of regional airports, he continued.

Work is underway on the designs for construction of six regional airports in Sohar, Al Duqum, Ras Al Haad, Adam, Haima and Shaleem, he added.

Macki also pointed out that RO80 million additional approbations were allocated for health sector including construction of buildings and additional expansions at the University Hospital by RO7 million, construction of a hospital in Masirah by RO5 million, furthering the polyclinics construction projects in Seeb, Sohar, Nizwa and Al Buraimi by RO9 million, construction of six new health centres in Sumail, Bidbid, Wadi Bani Khalid, Al Mudhaibi and Sur by RO4 million, the integrated unit project for heart diseases in Sultan Qaboos Hospital in Salalah by RO11 million, purchasing medical equipment and instruments by RO22 million, he furthered.

Macki pointed out that there is additional appropriations by RO162 million for urban planning and municipal services including removal of residues, pumping water pools and opening the main and internal roads affected by the adverse weather conditions in Muscat by RO10 million, rehabilitation and landscaping of parks affected by the adverse weather conditions in Muscat by RO10 million, projects for internal roads lighting, beautification and development in a number of wilayats by RO17 million, supporting the development project for Al Hafa area in Salalah by RO11 million, RO8 million for the expansion of sewerage water treatment and rehabilitation of network in Sohar, completion of lighting the internal roads in Salalah by RO5 million, the first phase of strengthening sewerage networks for nine cities by RO7 million and modernizing the vehicles and cleaning equipment of Muscat Municipality by RO6 million, he added.

Macki said that the additional appropriations include construction of dual-carriageways bridges and internal roads in the governorate of Dhofar to facilitate traffic at a cost of RO53 million, the most important of which are implementation of the internal roads in the wilayat of Mirbat, Sadah City and Hadbeen City, which include the asphalting, lighting, car parking lots, sidewalks, rainfall waters drainage at a cost of RO8 million, implementation of the dual-carriageway of 22 main roads in Salalah City that include lighting and the car parking lots at a cost of RO9 million, bridges for the intersections between Atteen and Al Rabat roads and between Salalah-Muscat and Al Rabat roads (Um Al Ghawarif Roundabout) at a cost of RO8 million and implementation of lighting and asphalting works in the workshops area behind the municipality building with the necessary compensations for the workshops’ owners so as to be shifted to the industrial workshop area at a cost of RO3 million, he continued.

Macki also pointed out that the appropriation also includes completion of the ring road from the industrial area to Raysut at a cost of RO3 million, transformation of the overhead electricity lines to underground cables and the completion of the lighting of the internal roads in Salalah City at a cost of RO10 million, maintenance and changing the sidewalks on the main and sub-roads in Salalah City at a cost of RO5 million, he added.

Macki also pointed out that there is additional appropriations by RO73 million for education sector including projects to establish and prepare vocational guidance centres and development resources in the educational regions and schools by RO13 million, RO14 million for implementing the academic plan for post-basic education for Grades 11 and 12, repairing damages in schools and educational facilities affected by the adverse weather conditions by RO8 million, approval of the allocations for 70 annual scholarships in Oman Medical College for batches four to eight by RO6 million, RO8 million for constructing a number of new schools and strengthening the existing ones in the different regions of the sultanate, he added.

Macki also reviewed the main features of the national economy performance during 2007 in the light of the global economy and global oil prices saying that during 2007 the global economy realised a strong growth of 5.2 per cent according to the forecasts of the International Monetary Fund (IMF).

This is due to the continued high growth rates in the emerging markets in China, India and Russia where they contributed half of the global economy growth rate during 2007. Further, it is due to the high growth rates in the low-income countries in Africa and the oil exporting countries resulting from unprecedented high oil prices in the global markets.

Macki also pointed out that the IMF is expecting the continuance of the international growth in 2008 but at lower rates reaching 4.8 per cent. This decline is ascribed to the growing unrest in the financial markets due to the problem of the real estate mortgage market in the US and the weakness of the American dollar and the increased inflationary pressures arising as a result of the increase in the oil and commodities prices. It is also expected that oil prices will continue their current increase in 2008 as a result of the strong demand, which is linked, from one side, to the economic growth and to the congestions in the refining capacities, retraction of stock levels and other geopolitical factors, he continued.

Pointing out the main features of the national economy performance during 2007, Macki said preliminary estimates of the GDP indicate that the national economy will achieve a growth of 11.6 per cent continuing its characteristic increasing growth in the recent years. The good performance of the national economy is due, from the one hand, to the increase in oil prices and, from the other hand, to the appropriate environment that is conducive to growth, which was facilitated by the economic and monetary policies followed by the government. In addition, it was due to the strong local demand and improvement in the non-oil exports performance, he added.

One of the positive features of the national economy performance in 2007 was that all the main activities contributed to this growth. The value added to the oil activities, in spite of the decline in the production rates by 3.7 per cent compared with 2006, will grow at a rate of 5.5 per cent due to the increase in the oil prices and the increase in the demand for natural gas, he added.

The non-oil activities are expected to grow by 17 per cent. The leading activities for this growth were the refined oil products (80 per cent), mining and quarries (30 per cent), wholesale and retail trade (30 per cent), transportation, warehousing and communications (26 per cent), and construction (25 per cent), he continued.

For the purposes of the budget, estimates for the oil prices were based on $40 in the 2007 budget. Despite the additional projects which were sanctioned during the year and the financial approbations which were allocated to cover the different elements of public expenditure, it is expected, in view of the high international oil prices, that the actual budget will achieve a financial surplus in the amount of RO1,720 million after covering the deficit. This surplus shall be utilised to strengthen the financial reserves of the government as well as pay up some of the actuarial dues of the retirement funds, he furthered.

As for foreign trade, Macki pointed out that the expectations indicate an increase of the overall proceeds of exports in 2007 by 4 per cent compared with 2006. The oil exports are expected to grow by 0.7 per cent, and the non-oil exports of Omani origin are expected to increase by 9 per cent by virtue of the increase in the exported quantities of LNG and the increase in its prices that are linked to the oil prices. Also the proceeds from re-export operations are expected to increase by 18 per cent, he continued.

Imports value is expected to increase by 46 per cent in 2007 compared with 2006 as a result of the increase in commodity prices in the international markets, retraction of dollar exchange rate against the other foreign currencies, in addition to the strong domestic consumption and investment demand.

In view of this, the balance of trade surplus will decrease in 2007 by 31 per cent compared with 2006, he added.

The inflation rate during the period (January-October 2007) amounted to about 5.3 per cent compared with the same period in 2006. This increase is mainly related to the group of foodstuff and other consumer goods.

The increase in the inflation rate is attributed to the increase in the growth rates of the national economy and the rise of international prices of commodities, in addition to the retraction of the dollar exchange rate against the other foreign currencies and the strong local demand, he furthered.

As to the privatisation programme, the work on its implementation is effectively progressing in a good way. The consultancy group appointed to evaluate the privatisation experience in the electricity and water sector confirmed the success of the experience, in respect of restructuring of the sector and motivating the private sector to invest therein. Thus subsidy to electricity decreased in the year 2007 from RO135 million to RO118 million, he added.

With regard to the tourism sector, upon which the Sultanate very much counts, in view of its several potentials, the preliminary data for 2007 indicate that the sector is expected to grow by a rate exceeding 8 per cent. This is due to the increase in the accommodation capacities and the efforts exerted to promote the tourism in the Sultanate.

It is noteworthy that the contribution of the tourism sector in the gross domestic product (GDP) greatly exceeds the current estimates of about 1 per cent, which is based on the performance of hotels and restaurants only, he furthered. The Ministry of National Economy, in collaboration with the Ministry of Tourism, is establishing an integrated system for tourism sector accounts that reflects the real contribution in the national economy.

A number of statistical surveys are now being conducted for measuring the spending of the inbound tourists and the spending of the residents on internal tourism. The results of these surveys shall constitute the necessary base for measuring the real contribution of the tourism sector in the national economy, he continued.

By looking at the private investment in the major tourism projects, it should be noted that the Seventh Five-Year Development Plan witnessed the start of the real implementation of a number of major tourism projects, such as, The Wave project, Salam Yetti, the tourism project in Shaa in Dhofar governorate, the commercial tourism complex in Salalah and the tourism resort in Zighi in Musandam governorate scheduled to be inaugurated during 2008.

Preparations are effectively progressing for commencing on the implementation of another number of big tourism projects, such as Al Seefa Resort, Barr Al Jissah, The Blue City and two tourism resorts in Musandam governorate, he said.

With regard to Muscat Securities Market (MSM) during the period (January-November 2007), it recorded a distinguished performance compared with the same period in 2006. The general index of the market rose to 8,443 points compared with 5,467 points realising gains of 54 per cent. The market value of MSM increased to RO9 billion compared with RO6 billion, i.e, an increase by 50 per cent.