Muscat, 1 Jul (ONA) — The amount of revenues earned by the State Budget by the end of May 2021 stood at RO 3 billion and 551 million, down by 18.86% as against revenues of the corresponding period of 2020.
This was due to the decline in average Oman Oil prices and production, which resulted in a 23.06% slump in oil revenues and 7.08% drop in gas revenues.
Statistics issued by the Ministry of Finance affirmed that public spending will continue to decline due to sustained government spending rationalization procedures. From January to the end of May 2021, government spending stood at RO 4 billion and 441.2 million, down by 2.92%, compared to the corresponding period in 2020.
In the meantime, the budget deficit by the end of May 2021 stood at RO 890.2 million.
While Energy Development Oman (EDO) is still in the process of being established, the government continued to cover the expenses of oil and gas sectors, which totaled RO 663.6 million, according to government statistics.
The Ministry of Finance is embarked on developing electronic systems as part of the e-transformation process. Key features of this process include the development of a Unified Financial System codenamed “Maliyah”, which aims to set up a database of financial information incorporating all associated financial transactions of government units and their budgets. The system aims at enhancing public spending management, promoting financial control and integrating financial systems and processes of all Government units.
Another feature is the development of an interactive platform (known as “Tafakur”) that seeks to improve public finance and achieve its sustainability. This involves enhancing community participation and the national register of government assets.
Oman is among the first countries to establish an integrated central system for managing government assets and investments.