On Sunday 1 January, Oman revealed its 2017 budget. Total projected spending is 11.7 billion Omani Rials 11.7 billion (RO11.7bn) and revenues estimated at RO8.7b, leaving an anticipated deficit of around RO3b, which is 12 percent of GDP and 43 percent lower than the actual deficit of RO5.3b for 2016 (based on initial final accounts). GDP is budgeted to grow by two percent.
This year’s budget is based on an oil price of US$45/bbl, which is lower than the US$55/bbl assumed in the ninth five year plan and suggests prudent financial management.
In our latest outlook, we analyze the proposed measures in the budget as Oman seeks to grow its economy in a challenging economic environment.
For more information, or to discuss what the budget means for your business, please feel free to contact me or any of our team members.
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