Oman will cut public spending if oil slips below $45

Oman will cut public spending this year if the average oil price slips below the $45 per barrel it budgeted for 2009, the economy minister has said.

The 6.424 billion Omani rial ($16.7 billion) budget with an estimated shortfall of 0.81 billion rials was approved by the Sultanate's ruler on Thursday.

"If the (average) oil price falls below $45 per barrel then we are going to revise the 2009 budget and cut down the number of projects this year," Ahmad bin Abdul-Nabi Mekki told Reuters on the sidelines of a press conference on Saturday.

The previous year's budget was also based on a $45 price for the barrel of oil. Brent crude closed at $46.91 on Friday. (Reuters)