New projects added to those ongoing under 7th plan, RO 665m allocated for new development projects, Substantial allocations for roads, infrastructure, housing, Revenues, expenditure at RO 5,614m and RO 6,424m, Oil, gas to represent 75 per cent of overall revenue, Govt civil ministries', units' expenditure at RO 2,170m, Current, capital revenues estimated to reach RO 1,422m, Oil revenue estimated at $45 a barrel with 805,000 bpd
MUSCAT -- The Sultanate yesterday unveiled an RO 6.424 billion budget for 2009 that envisages additional projects while retaining all the 7th Five-Year Plan (2006-2010) programmes. The 2009 budget, approved earlier by His Majesty Sultan Qaboos, projects an estimated RO 810 million deficit compared to a shortfall of RO 400 in the 2008 budget and is based on an average oil price of $45 a barrel. Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, who presented the budget, described it as 'flexible' in that it may entail adjustments if oil price fell below $45 a barrel. A total of RO 665 million has been allocated for new development projects to be implemented during 2009.
The budgeted revenues and expenditure for 2009 stand at RO 5,614 million and RO 6,424 million, respectively as against RO 5,400 and RO 5,800 respectively for 2008. This indicates an increase of RO 624 million (11 per cent) in the 2009 total expenditure compared to 2008. Macki said the prices of commodities and basic materials are expected to continue their decrease at high rates in 2009 in view of the anticipated recession of the global economy. Therefore, inflation rate in the Sultanate will decrease below 10 per cent in 2009, he added. Oil and gas revenues estimated for 2009 represent 75 per cent of the total while current and capital revenues constitute 25 per cent.
Oil revenues are estimated on the assumption of an average price of $45 per barrel and daily oil production of 805,000 barrels. Based on these assumptions, oil revenues are estimated to be RO 3,522 million, accounting for a contribution of 67 per cent of the total revenues. Revenues from gas are estimated at RO 620 million, accounting for 12 per cent of the total revenues. The current and capital revenues are estimated to reach RO 1,422 million, showing an increase of 22 per cent over the 2008 budget or 25 per cent of the total revenues. The current expenditures of the government civil ministries and units stand at RO 2,170 million, showing an increase of RO 245 million (13 per cent) over estimates of the 2008 financial year.
Of this, the educational sector accounts for 36 per cent at RO 791 million, i.e. an increase of RO 81 million (or 11 per cent) over the approved budget for the year 2008. Similarly, the health sector accounts for 12 per cent or RO 271 million of the total civil ministries' expenditure, showing an increase by RO 43 million (19 per cent) over the 2008 allocations. Allocations for the development budget stand at RO 800 million, showing an increase of 10 per cent over the 2008 budget. These allocations are set to cover the ongoing as well as new projects listed in the Seventh Five-Year Plan (2006-2010) under the different sectors. RO 18 million has been allocated to subsidise the interest on development and housing loans provided by the Development Bank, the commercial banks and Oman Housing Bank to the beneficiaries.
Additional projects
An additional allocation of RO 1,053 million for the road sector includes new projects such as paving of Hasik-Al Shuaymiya road (RO 70 million), dualisation of Al Amerat-Qurayat road (RO 66 million), dualisation of 73 km of the Salalah-Thumrait road with lighting and supervision (RO 48 million), tackling traffic congestions at Muscat Governorate and raising roads' efficiency to meet rainfall contingency conditions (RO 50 million), rehabilitation of Nizwa-Thumrait road third phase with supervision (RO 51 million), dualisation of Bausher-Al Amerat road -- 14 km with lighting (RO 25 million), construction of Khasab-Al Khalydia road with supervision -- 22 km as first phase (RO 8 million), internal roads (service) paving in various regions (RO 278 million), and repairing of roads damaged by climatic conditions such as the repairing of asphalt and gravel roads in Al Batinah and Sharqiyah Regions and repaving Wadi Adai-Al Amerat road (RO 265 million).
RO 922 million has been allocated for additional port sector projects, including construction, development and expansion of Al Duqm port (Al Wusta) (RO 697 million). An amount of RO 262 million has been earmarked for the gas sector to implement projects for supply that includes purchase of compressors, construction of gas pumping stations, laying networks for gas distribution and replacing gas lines. RO 339 million has been set aside for the housing sector projects that include construction of 2,200 housing units for owners of affected properties along the coastal road at Al Batinah as first phase, building of 718 housing units at Qurayat for those affected by the climatic conditions and building of 184 houses for social security and limited income families totally affected by the climatic conditions in a number of wilayats.
RO 186 million has been earmarked for new projects such as consultancy studies, designing and supervision with regard to development and renovation of Muscat international and Salalah airports (RO 140 million) and consultancy studies for designing and supervision for constructing six regional airports at Sohar, Al Duqm, Ras Al Had, Adam, Haima and Shaleem (RO 46 million). Similarly, allocations for new projects in the health sector and education sector stand at RO 168 million and RO 104 million respectively. Allocations for town planning and municipal services sector projects include proposed compensations as first phase for owners of properties affected by the Al Batinah coastal road (RO 200 million), removal of residues, pumping water and opening the main and internal roads affected by the exceptional climatic conditions in Muscat (RO 15 million), repair of parks and afforestation in the aftermath of the climatic conditions in Muscat (RO 10 million) and several similar projects.
By Hasan Kamoonpuri
Oman Daily Observer 2009
