Oman’s 2016 Budget Deficit Soars

Oman’s deficit in the first eight months of the year soared to OR4.37bn ($11.36bn), up 63% from OR2.68bn ($6.97bn) in the same period of 2015. The deficit annualized for 2016 would rise to OR6.56bn ($17.06bn), or almost double the projected deficit of OR3.3bn ($8.58bn). This remains in line with MEES assessments of Oman’s first half results (MEES, 9 September).

With total revenue of OR8.6bn ($22.36bn) and total expenditure of OR11.9bn ($30.94bn), Oman’s projected deficit has already been exceeded.

Although revenues fell by 28% on the back of a whopping fall of 44% in net oil revenue to OR2.13bn ($5.54bn) from the same period of 2015, the Sultanate has kept spending, with total outlay down just 5% year on-year. Oil revenues are on track for just $8.28bn, barely half 2015’s total and the lowest since 2006, despite record breaking production (crude & condensate) of 1.003mn b/d in the first nine months of 2016; up 25,000 b/d year on year. Exports stayed more or less static in September at 832,000 b/d, up from 830,000 b/d the month before, but lower prices for Omani crude means revenues for last month will likely fall slightly from August. (CONTINUED - 465 WORDS)