Analysis of Oman’s 2018 budget | KPMG | OM

Analysis of Oman’s 2018 budget

Analysis of Oman’s 2018 budget

On Monday 1 January, Oman revealed its 2018 budget. Total projected spending will amount to 12.5 billion Omani Rials, an increase of 6.8% against the previous year. Revenues are estimated at 9.5 billion Omani Rials, leaving a budget deficit of 3 billion Omani Rials, a level of 10% of GDP. GDP is budgeted to grow at a rate of 3%.

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This year’s budget is based on an oil price of US$50/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.

Key highlights

  •  71 percent of government revenues come from oil and gas
  • Corporate tax revenue is projected to increase by 25 percent
  • Expenditure is budgeted to increase by seven percent without curtailing development expenditure
  • The deficit is predominantly financed out of borrowings
  • The government is focused on successful implementation of its Tanfeedh and privatization program 

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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