Stress on cutting expenditure, increasing non-oil revenues in Oman

Business Sunday 25/September/2016 21:22 PM
By: Times News Service
Stress on cutting expenditure, increasing non-oil revenues in Oman

Muscat: In a meeting held yesterday the Financial Affairs and Energy Resources Council (FAERC) reviewed the circular on the implementation of the state’s budget for the fiscal year 2016 and the expected outcomes up to the end of the year.
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It also reviewed some financial performance indicators for the first seven months of the year including the realised oil prices, realised revenues and expenditure levels due to growing deficit during the period , which is attributed to the drop of actual oil price to about $36 compared to the estimated price at the budget ($45).
The FAERC held its third meeting for 2016 under the chairmanship of Darwish bin Ismaeel Al Balushi, Minister Responsible for Financial Affairs and FAERC Deputy Chairman.
The Council stressed the importance of continuing the measures to control public expenditure and increase non-oil revenues.
The Council also discussed the basis and assumptions on which the budget estimates for the fiscal year 2017 were made as the financial condition was affected by the continuing drop in oil prices.
The Council approved a number of measures related to improving revenues and reducing expenditure. After completing their study by the respective organizations, these measures will be re submitted to the Council at its next session for approval.
The council also reviewed a number of issues related to oil and energy sector the most important of which are the study on the national energy strategy and the measures that should be taken to enhance the economic value of the Sultanate’s energy resources. The Council reviewed a number of other topics and took necessary decisions towards them.