Oman cuts government budget for the second time in 2 months

Oman’s Ministry of Finance will cut the budgets of government bodies and the armed forces by a further five per cent this year, in an attempt to reduce the impact of the collapse of oil prices, according to the state news agency ONA.

The oil producing Gulf state is rated “junk” by rating agency S&P and is expected to see its deficit widen this year because of lower oil prices.

The government shaved its budget by five per cent in mid-April in response to the coronavirus outbreak.

The directives included stopping all non-essential parties and events such as annual celebrations and inaugural events.

Oman: Companies must get rid of foreigners and hire locals

The ministry added that organisations are now obliged to “review priorities” and obtain permits before launching any new project or entering into any additional financial commitments.

The government will also be negotiating new rents for any of its offices which are held by private property owners in an effort to reduce ren outgoings by at least ten per cent.

To date, the total number of coronavirus patients in Oman has reached 4,016, with 17 deaths.