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Thu 25 Aug 2016 01:33 PM

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Oman gov't budget deficit grows to $9.1bn in H1

Oman is imposing a series of austerity measures as it struggles to cope with lower oil prices

Oman gov't budget deficit grows to $9.1bn in H1

Oman's government posted a budget deficit of OR3.50 billion ($9.1 billion) in the first half of 2016, nearly double the figure a year earlier.

The H1 deficit compared to a deficit of OR1.92 billion in H1 2015, 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.

Earlier this month, 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.