Oman's budget deficit swells to RO4.2bn in 2020

Published 03 Jan,2021 via Muscat Daily - As the COVID-19 pandemic and continued low oil prices triggered tremendous challenges for Oman’s economy and public finance, the sultanate’s budget deficit sharply increased to RO4.2bn for the full year 2020 as compared to RO2.5bn total deficit estimated in last year’s budget.

The preliminary results of 2020 budget showed a sharp decline in Oman’s total revenue that led to a higher deficit. As per the Ministry of Finance’s statement issued on Saturday, the sultanate’s total revenue in 2020 fell by 21 per cent to RO8.5bn as against the budgeted figure of RO10.7bn. Total public spending in 2020 declined by 4 per cent to nearly RO12.7bn as compared with RO13.2bn in the 2020 budget estimates.

‘The 2020 budget faced dual challenges of lower oil prices and economic and financial implications triggered by the COVID-19 pandemic. The 2020 budget deficit is projected to reach nearly RO4.2bn, up by RO1.7bn than the estimated deficit of RO2.5bn in the 2020 budget. This is attributed to the implications of COVID-19 and sharp drop in oil prices,’ the Ministry of Finance said in its statement.