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FINANCIAL NEWS
Oman cuts subsidy spending to help budget deficit
04 Jan 2016
(MENAFN) Oman’s government intends to reduce subsidy spending by about two thirds this year, in order to support a budget shortage caused by low oil prices.
Moreover, subsidies on utility bills, housing loans, fuel and other goods estimated at USD 1.0bn this year, down from USD 2.88bn last year.
Additionally, Oman’s Cabinet accepted fuel subsidy reforms as well as spending cuts and tax rises to bring the shortage under control.
The government predicts a deficit of USD 8.56bn or 13 percent of gross local product (GDP) this year, down from a deficit of USD 11.68bn for last year.
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