World Economy

Oman Will Borrow to Plug Budget Deficit

Oman Will  Borrow to Plug Budget DeficitOman Will  Borrow to Plug Budget Deficit

Oman says it will need to borrow money from local and international markets as it announced its budget for 2017 with a projected deficit of around $7.7 billion, AFP reported. A finance ministry statement on Sunday said the sultanate, which like other oil-producing (Persian) Gulf Arab states (Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain) has been hit by a cash crunch because of a sharp drop in oil prices, will also follow a policy of austerity. It estimated the deficit will be three billion riyals ($7.79 billion) or 12% of the country’s gross domestic product. Oman will therefore seek to borrow locally and abroad to finance 84% of the deficit, as well as dig into its foreign reserves to cover the remaining 16%, the statement said. It projected revenues of around 8.7 billion riyals while estimated that government spending in 2017 would be 11.7 billion riyals, 2% less than in 2016. A total of 3.34 billion riyals is earmarked for defense and security.


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