MUSCAT: Preliminary indicators of the budget this year point to the possibility of Oman achieving the lowest deficit since 2014, despite oil prices fluctuation, Minister of Finance said.

Speaking while revealing details about the 2022 State Budget, His Excellency Sultan bin Salim Al Habsi said: “Over the past few years, the national economy passed through a succession of financial hurdles: The recession of international oil prices due to the decline of global demand, the rise of general debt to record levels, the pandemic of coronavirus and the hike in cost of borrowing—which all caused a collective negative impact on Oman’s creditworthiness.”

According to the Minister, the budget 2022 was drafted in conformity with the 10th Five Year Plan and Oman Vision 2040 and this requires taking all current precautions into account.

“Deficit in 2022, estimated on the basis of $50 a barrel, will stand at OMR 1.5 billion. It stands for 15% of total revenues and 5% of the Gross Domestic Product. It also falls within estimated deficit of the Medium Term Fiscal Plan. The cost of repayment of government loans in 2022 is expected to stand at OMR 2.7 billion,” Al Habsi explained.

The total general revenues of the State Budget 2022 are estimated at OMR 10.58 billion, 6% higher than revenues expected due to be collected by the end of this year (2021).