Royal Decree ratifies State General Budget
MUSCAT -- His Majesty Sultan Qaboos yesterday issued a Royal Decree No 1/2014 ratifying the State General Budget for the fiscal year 2014. Article 1 ratifies the State General Budget for the fiscal year 2014 according to the attached tables. Article 2 says that all ministries and government units shall implement provisions of this Decree, each within the scope of its jurisdiction. The Decree came into force yesterday. Meanwhile, Darwish bin Ismaeel al Balushi, Minister Responsible for Financial Affairs, will hold a press conference today at the Ministry of Finance during which he will unveil the main features of the State Budget for the fiscal year 2014, which includes the expected expenditure and revenues, as well as various economic and development projects that the government intends to implement during the year.
Oman News Agency (ONA) has learnt that the expected revenues at the State Budget for the fiscal year 2014 are estimated at RO 11.7 billion, a rise by 4.5 per cent compared to the budget of 2013, which stood at RO 11.2 billion. The size of expenditure is estimated at RO 13.5 billion, a rise by 5 per cent compared to the expenditure in the budget for the fiscal year 2013, which stood at RO 12.9 billion. The government has calculated the price of the crude oil for the State Budget for 2014 at $85 per barrel. Earlier, Al Balushi had said before the Majlis Ash'shura that the general expenditure has surged significantly during the last three years from RO 7.9 billion in 2011 to a record RO 13.5 billion in 2014, an increase of 70 per cent, noting that the government is facing a real challenge to sustain the current level of spending.
He had said that despite unfavourable global economic conditions the national economy continued its robust performance with the gross domestic product (GDP) at fixed prices increasing from 3.1 per cent in 2011 to 4.8 per cent in 2012, and this year the GDP is projected to grow by 5 per cent and to sustain the same levels. Al Balushi said the state reserve fund is now worth RO 14 billion up from just RO 180 million in 1999 growing by average of 8 per cent annually. He said the sovereign investments abroad are known and stable and there are direct investments such as firms and hotels. Domestic investments are overseen by the Oman Investment Fund (OIF). With the infrastructure projects nearing completion the new five-year development plan which is scheduled to start next year will focus on the non-oil sectors such as tourism and agriculture.
Al Balushi said inflation fell to 1.5 per cent during 2013 and is expected to retain the same levels this year. Furthermore, the national economy is projected to record surpluses in the external balances with an estimated 31 per cent surplus in the trade balance to GDP in 2013 and 24.9 per cent this year. This year's state general budget has taken into consideration the economic, financial and socio-economic conditions as well as the guidelines of the eighth five-year plan (2011-2015) and the long-term strategy (1996-2020). Hence, the main goals of the budget are supporting economic growth, improving public services as well as complementing the infrastructure projects, Al Balushi said.
Total spending was estimated at RO 13.5 billion, an increase of 5 per cent compared with 2013 budget without taking into consideration the additional spending that will result from the implementation of His Majesty the Sultan's Royal order regarding the starndardisation of salary and grade schedule of civil service employees which will cost an estimated RO 800 million to RO 900 million. The extra cost will be added following approval of the 2014 budget. This will generate an estimated budget deficit of RO 1.7 billion, that is 15 per cent of the overall revenues and 6 per cent of GDP, Al Balushi said.
© Oman Daily Observer 2014
