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Oman’s budget cuts for government units to save OMR 1.3 billion, says Minister

TAS News Service

info@thearabianstories.com

Wednesday, May 13, 2020

MUSCAT: The decision to reduce the allocated budgets of ministries and government units will save OMR 1.3 billion, according to His Excellency Darwish bin Ismail Al Balushi, Minister Responsible for Financial Affairs.

On Wednesday, the Ministry of Finance issued a circular informing all government units about its plans to reduce the spending due to the coronavirus crisis and the plunge in oil prices. “We have taken several measures including reducing the budget which could save us OMR 1.3 billion,” he said.

“The global economy is currently going through an unprecedented economic and financial crisis as a result of the spread of the coronavirus pandemic (COVID-19) and the sharp decline in world oil prices. This has had many negative impacts that are dangerous for all the countries of the world and we are taking measures to rescue the economy,” he added.

According to the circular issued, the budgets for all civil, military and security government units has been further reduced by 5 per cent bringing the total spending cut to 10 per cent.

The Ministry have also asked to negotiate with landlords to reduce the rents by 10% for the buildings rented by the government. Ministry also asked all government units to cancel all “unnecessary events, parties, launches and annual celebrations” and reduce its spending.

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