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ELVIS PRESLEY’S JETS ONED SET TO BE AUCTIONED Elvis Presley’s pair of personal jets, one complete with gilded wash basin and plush sleeping quarters, will go under the hammer. >A9
SATURDAY, January 3, 2014 / 12 Rabi Al Awal 1436 AH
DECISION
Royal Decree ratifies State Budget 2015 MUSCAT: His Majesty Sultan Qaboos bin Said has issued a Royal Decree No. 1/2015 ratifying the State’s General Budget for the fiscal year 2015. Article (1) states that the State’s Budget 2015 shall be ratified in accordance with the tables attached to the Decree. Article (2) instructs all ministries and government units to implement the provisions of this Decree, each within the scope of its jurisdiction. Article (3): The Decree shall be published in the official gazette and be enforced on January 1, 2015. -ONA
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OMR2.5 billion shortfall expected in 2015 budget Budget Proposal 2015 (In OMR billion)
Education and health
Change (%) 14.1
4.5
3 billion 1.6 billion
Expenditure 11.6
Budget allocation for education
Budget allocation for healthcare
-1
Actual budget of 2014
Revenue 9.16
-5.7
13.9b
14.5b
Oil revenue 1.8
12.5
2.5
38.9
F O R I N M AT E S
Subsidy
Royal amnesty MUSCAT: His Majesty Sultan Qaboos bin Said, Supreme Commander, has issued a Royal amnesty for a number of inmates convicted for different crimes. The Royal amnesty included 209 inmates of whom 117 are of different nationalities. The amnesty, issued by His Majesty the Sultan, coincides with the Prophet’s (PBUH) birth anniversary and in consideration of their families. —ONA
Deficit Source: Ministry of Finance
Actual public revenues
Actual spending
Graphics
The major development projects, which are either directly implemented by the government or built by government-owned companies, are expected to stimulate economic activity and generate jobs
TOP THREE INSIDE STORIES
OMAN
GCC body approves goods’ specifications
1
The secretary general of the GCC-SO said that the technical council of the GCC-SO approved a new set of Gulf standard specifications for a number of goods & products. >A3
INDIA
Fishing boat with explosives blows up
2
A Pakistani fishing boat laden with explosives bound for India blew up, killing all four people on board, after the Indian coast guard tried to stop it. >A5
SPORTS
Sayyid Khalid boosts Oman campaign
3
OFA Chairman Sayyid Khalid Al Busaidi arrived in Australia and made his presence felt at the Oman’s training session. >A12
The estimated public expenditure for 2015 is up 4.5% compared to 2014. The estimated public revenue is down 1% over the last year
MUSCAT: A deficit of OMR2.5 billion is expected in the Oman government’s expenditure and revenue in the 2015 budget estimated at OMR14.1 billion and OMR11.6 billion respectively. There was no surprise in the budget in the wake of a 48 per cent fall in crude oil prices, which constitute 79 per cent of the government revenue. It also appears that the government did not accept the harsh measures mooted by Majlis Al Shura to enhance revenue. The estimated public expenditure for the current year is up 4.5 per cent compared to last year’s
expenditure estimate. However, the estimated public revenue is one per cent less than the previous year’s estimate. Ministry of Finance The budget deficit estimate of OMR2.5 billion constitutes 21 per cent of revenue and 8 per cent of gross domestic product (GDP) of the country, said a statement from the Ministry of Finance. The budget deficit will be met by issuing long-term Islamic bonds or sukuks. The current expenditure of OMR9.6 billion represents 68 per
cent of total public expenditure, while investment expenditure at OMR3.2 billion makes up the remaining 22 per cent. Subsidy programmes The investment expenditure is mainly for funding infrastructure projects, oil and gas projects and ventures implemented by government-owned companies. Another OMR1.1 billion is for various government subsidy programmes, which make around 8 per cent of the overall expenditure, added the ministry statement. As far as the government revenue is concerned, oil revenue at OMR9.16 billion constitutes 79 per cent of overall revenue, while non-oil revenues are estimated at OMR2.44 billion, making up 21 per cent of total revenue. However, the ministry did not reveal the assumed oil price for calculating government revenue. The major development projects, which are either directly
GDP set to grow by 5% in 2015 A E JAMES businesseditor@timesofoman.com
MUSCAT: Oman’s economy is expected to grow by five per cent this year, against an estimated 4.4 per cent growth in gross domestic product (GDP) in 2014, according to the Ministry of Finance. “National economy is expected to continue growth at an acceptable rate, driven by
implemented by the government or built by government-owned firms are expected to stimulate economic activity and generate job opportunities. These projects include the first segment of the national railway project between Sohar and Buraimi, the first and second phase dualisation of the road from Adam to Thumrait, an integrated fisheries complex at Duqm and additional infrastructure work at Duqm Port in addition to the Liwa residential township, the sewage network in the Muscat governorate and the wastewater treatment plants in various wilayats. The other projects are the Oman Food Investment Holding for manufacturing poultry meat and dairy products, the development of infrastructure for aquaculture ventures, three hotels (in five-star and four-star categories) of Omran and Liwa Plastic and the Muscat-Sohar multiproduct pipeline projects of Orpic.
the growth of non-oil activities and effective strength of domestic demand and high oil production,” the Ministry of Finance said in a statement, which was released to announce the state budget. Growth rate of non-oil sector is expected at 5.5 per cent and the main areas of focus include construction, electricity and water, trading, services and manufacturing industries. See also >B1
About OMR9.6 billion has been allocated to social sectors such as education, health, housing, training and other services, which have remained at the same level as compared to last year. Education sector The budget allocation for the education sector will be OMR3 billion, which constitutes 21.3 per cent of the total expenditure. This is for setting up 41 new schools in different wilayats, to provide training within the country and outside at a cost of OMR95 million. The healthcare sector will get OMR1.6 billion, making up 11.3 per cent of the total government expenditure. This is for setting up 11 hospitals and primary health centres across the country. The budget allocation for the social insurance and welfare sector will be OMR129 million. The housing sector will get an allocation of OMR2.3 billion. >A3
D E L AY I N D I S T R I B U T I O N
Long wait for plots in Muscat over for 150 nationals; many still in the queue FAHAD AL GHADANI
fahadnews@timesofoman.com MUSCAT: For many Muscat residents, the seven-year wait for plots was over as the Ministry of Housing allotted lands to 150 nationals on Thursday. The ministry revealed on Twitter that the distribution began on January 1, and plots are being awarded as per the application dates. For those who had applied in late 2008, it has been a long wait. “I have been waiting for the last seven years,” said Ali Abdullah, who had applied in 2008 and kept checking the list of names announced by the ministry for a long time. “Even though I know that the place where I will be allotted a plot will be at quite a distance from the residential areas, it is still good news,” he said. The ministry has been looking for alternatives, including signing of agreements with specialised companies for levelling of some sites in Muscat. However, minis-
86,000 people have applied for subsidised government land since 2009, but the ministry has approved only 38,220 plots
try records show that even though there were nearly 119,000 residential plots in Muscat, the number of applicants exceeded that number and that led to a delay in their distribution. The ministry also explained that a major challenge was the mountainous terrain in a number of regions and the effect of wadis on some sites. The ministry began distributing commercial and industrial land in Muscat and the names of many eligible applicants were published in local newspapers. To make it easy for the youth
across the country to own their own homes, the ministry is looking to distribute residential plots at subsidised rates as property prices are going out of their reach. This is also being done to reduce the waiting list of those who are paying subsidised mortgages. Rising property prices According to national statistics, one out of every four married couples still lives with their parents because they cannot afford to take a loan due to rising property prices. Around 86,000 people have applied for subsidised government land since 2009, but the ministry has approved only 38,220 plots during this period, which is less than 50 per cent of the demand. Omanis above the age of 22 are entitled to subsidised land but they may have to wait for some more time for their turn. According to the 2014 figures compiled by leading estate agents in Oman, an average residential plot in Muscat is being sold for OMR67,000, while a five-bedroom
villa carries an average price tag of OMR156,000. The Ministry of Manpower’s statistics show that the average salary of an Omani worker in the age group of 21 to 28 years in the private sector is OMR680 per month — certainly not enough to buy land and get a loan to construct a house. This restricts the ability of young people to own a house and leave their parental homes. The Majlis Al Shura suggested providing affordable housing to citizens and the members are optimistic about the government’s decision after the positive response from the General Secretariat of the Council of Ministers. Government statistics show that almost 80 per cent of Omanis own homes. The government is working to level some mountains in Muscat thus providing citizens with more than 50,000 plots amid the growing demand for land in the capital. A huge amount of funds has been assigned for this purpose, said the source, without disclosing the details.
Grand welcome of New Year
A2