MUSCAT: Oman on Tuesday reduced the approved liquidity of the development budgets of all ministries and civil units for the current year by 10 per cent.

This is part of reducing the expense of the government.

In a circular issued by the Ministry of Finance, directing the government entities to give priority in spending to disbursing the payments due to contractors and suppliers.

“Given the continuing effects of unfavourable financial and economic conditions, no additional financial allocations will be considered during the year,” the Ministry of Finance circular said.

The finance ministry also asked all government units to inform before floating tenders or assigning any business or any financial commitment to the already approved development budget.

All exceptional allowances stopped
Earlier on Tuesday, the Ministry of Finance stopped granting “exceptional allowances” to all government employees, especially those who will be referred for retirement.

The decision which comes on the orders of His Majesty Sultan Haitham bin Tarik applies to all ministries, public bodies, institutions and other units of the administrative apparatus of the security and military state and other public legal persons.

The move is part of reducing the public debt and expenses in the wake of coronavirus crisis in the country.

5% cut in budget
Early last month, the Finance ministry has cut by 5% the budget allocated to government agencies for 2020,

“Based on the government’s decision to reduce the approved budgets of civil, military and security agencies for the year 2020 by 5%, the Ministry of Finance would like to inform all government agencies that the aforementioned percentage has been deducted from the approved budget for each agency,” a finance ministry circular dated March 12 said.

The circular said no further funding would be made available if ministries do not stick to their amended budgets.