Omani currency
Omani currency

Oman Plans $5.7Bln Budget Deficit In 2021

Dubai- Massader News

Oman expects to have a 2021 budget deficit of about 2.2 billion rials ($5.7 billion), and plans to borrow from domestic and international markets to help plug the gap, according to a Twitter posting by the state-run Oman News Agency.

The country aims to raise about 1.6 billion rials through borrowing and draw the remaining 600 million rials from its reserves, it said, adding that new ruler Sultan Haitham bin Tariq al-Saidhad ratified a decree approving the fiscal plan.

The budget is based on an oil price of $45 a barrel and the government expects state revenues of 8.640 billon rials this year, a decrease of 19 percent on estimated revenues for 2020.

Oman, rated sub-investment grade by all major credit rating agencies, faces a widening deficit and large debt maturities in the next few years, and is trying to reduce its dependence on crude oil revenues.