Omans 10 month Budget Deficit announced

Oman’s budget deficit has been reported on by the Times of Oman. It was US$8.46 in 2015 from Jan-Oct; in 2016 the Times reported it was US$12.49 (using Omani Rial US$ conversion).

Oman Currency
Oman Currency

This 47% increase in the deficit was explained by the Times as being due to the fall in the oil price from 2015 to 2016. Revenues from oil fell in that period by 41% on top of the 45% drop using a Jan-Sept period in 2014 & 2015 reported by Gulf News – around a 68% overall drop in oil revenues during the 2014-2016 period. Oman maintained overall spending during earlier oil price drops in the 1990s – so the government is following a well-used practice. This year the government is financing the deficit by Bond issues according to Reuters, along with sale of assets and use of financial reserves