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Thu 1 Dec 2016 09:27 AM

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Oman gov't budget deficit grows to $11.5bn

Official figures reveal January-Sept deficit increases as low oil export prices slashes Oman revenues

Oman gov't budget deficit grows to $11.5bn

Oman's government posted a budget deficit of OR4.43 billion ($11.5 billion) in the first nine months of 2016, according to latest official figures.

The January-September deficit compared to a deficit of OR2.93 billion, as low oil export prices slashed its revenues, provisional Finance Ministry data, cited by Reuters, showed.

The government's original 2016 budget plan envisaged state expenditure of OR11.9 billion and revenues at OR8.6 billion.

Officials said their 2016 economic plans assumed an average oil price of $45 a barrel.

Oman is imposing a series of austerity measures after it posted a budget deficit of about OR4.5 billion last year. Gasoline and diesel price subsidies have been cut and similar cuts are planned for electricity and liquid petroleum gas.

In August, the World Bank said Oman's subsidy bill is expected to fall by 64 percent this year as the government seeks to reform its finances amid lower oil prices.