Wednesday, Jul 20, 2016

Muscat: Tracking devices will be installed on all vehicles belonging to government agencies, in a new move announced by the Ministry of Finance to monitor and cut back on government spending.

The ministry found an increase in expenses incurred by government vehicles recently.

The move comes as the country grapples with a weakened economy amid the slump in oil prices.

“The data showed an increase in the spending of government vehicles last May, which reflected in the expenses of the fuel consumption, spare parts and maintenance,” said the circular.

The Ministry of Finance has issued 17 circulars in 2016 aimed at controlling and managing spending amid the oil crisis.

In April, the ministry ordered all public institutions to halt all privileges granted to public employees outside the framework of the salary payroll.

Bonuses include health insurance for the employee and his family, interest-free personal and housing loans, huge cash bonuses for some employees, free scholarships, free cell phones, free medical checks, travel health insurance, furniture allowance and Ramadan and Eid allowances.

Also in April, the ministry called on all government units to raise efficiency in fee collection.

The ministry aims to gradually reduce the country’s dependence on oil revenues.

The ministry also asked governmental units to find extra fees from the services they offer to the public that could help strengthen non-oil revenues.

Earlier this week, the ministry called on all government agencies to revise all service contracts, including cleaning services and building maintenance.

The 2016 General Budget released in January projects 3.3 billion Omani riyals (Dh31.47 billion) in deficit spending for 2016, which it says will try to reduce by improving the non-oil revenues as well as cutting expenditures.

Oman posted a budget deficit of 4.5 billion riyals in 2015, as revenues declined by more than 50 per cent.

By Fahad Al Mukrashi Correspondent

Gulf News 2016. All rights reserved.