The Oman Budget for 2021 has been announced.
The figures are based on a US$45 per barrel oil revenue. Oil & gas income, accounts for some 70% of government revenue.
Oil production has declined markedly over the last few years peaking at 1,000,000 barrels a day in 2016, and dropping to today’s, 970,000 a day, however gas production is expected to grow substantially this year with the flow from BP’s Khazzan gas field.
Overall government income is hoped to be OMR8.64 Billion (US$22.46) while government expenditure is planned to be OMR10.88 (US$28.28). This will be though Oil Oil OMR 3.60 Billion (US$ 9.36)
Gas OMR 1.80 Billion (US$ 4.68) Other income OMR 3.20 Billion (US$ 8.32 ) .
This difference of income over expendature OMR-2.24 Billion (US$-5.82) means that 25% of government expenditure will need to be found elsewhere. This requirement is intended to be through borrowings of OMR1.60 Billion (US$4.16) and reserve withdrawal OMR0.80 Billion (US$2.08).
The intention is to invest though Government Civil development OMR 0.90 Billion (USD 2.34), Energy Investment OMR 1.30 Billion (USD 3.38), General Investment OMR 2.90 Billion (USD 7.54).
VAT will be introduced from April 2021 on specified sectors at a rate of 5%.