Times of Oman - January 3, 2016

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FROM THE WORDS OF HIS MAJESTY THE SULTAN

At the opening of the annual session of the Council of Oman, 2009

‘His Majesty’s Wisdom’ Designation of 17th October each year as Omani Women’s Day will highlight their achievements over the previous year and their contributions to serving their community, while raising awareness of their true role and status and boosting their aspirations towards the future.

SUNDAY, January 3, 2016 / 22 Rabi Al Awal 1437 AH

S E C R E TA R I AT G E N E R A L

Objectives of Ninth five-year plan reviewed MUSCAT: Objectives of the 9th Five-Year Plan and the outlook of Oman economy 2020, were reviewed by the Secretariat General of the Supreme Council, in the light of the achievements of the earlier five-year plans . In a statement, the Supreme Council pointed out that the 9th five-year development plan was prepared in cooperation with the various government departments and with the participation of the private sector. >A6 FORECAST

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are estimated at

REJIMON K

reji@timesofoman.com

OMR400 million, a reduction of OMR710

MUSCAT: 2016 is set to be a year of necessary austerity for Oman with experts saying the decline in government spending will ripple through the economy as officials work to keep the Sultanate’s finances on track. “We should never forget the fact that the government is a major spender in any economy which produces a multiplier effect. Obviously, the decline in expenditure may mean reduction in

million (or 64 per cent) compared to

Staff Reporter

MUSCAT: Oman’s government on Saturday unveiled details of its state budget, with major austerity measures and steps to raise nonoil income. The total revenue is estimated at OMR8.6 billion, a fall of 4 per cent compared to the actual expected revenues of 2015. The government revenue estimate in 2016 comprises income from oil and gas at OMR6.15 billion, representing 72 per cent of the total revenues. The non-oil revenue estimates for 2016 amount to OMR2.45 billion, representing 28 per cent of total revenue estimate. The non-oil revenues are expected to reach OMR1.9 billion in 2015. Also, as much as OMR4 billion has been allocated for education, health and social welfare, which include OMR2.5 billion for education sector, OMR1.3 billion for healthcare sector and OMR163 million for social care.

for 2015 budget

The total expenditure is estimated at OMR11.9 billion, a decline of OMR1.5 billion or 11 per cent from the actual spending expected for 2015. Oil and gas sector The expenses for oil and gas sector are estimated at OMR1.79 billion, a 14 per cent dip from the estimates of 2015 budget. The current expenditure of the ministries and government departments are estimated at OMR4.26 billion, showing a decline of 12 per cent compared to the budget estimates for 2015. This figure included salaries and entitlements of employees at OMR3.3

Oman’s rising deficit

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Oman may still face a formidable budget challenge in 2016 amid the forecast of a higher deficit. >A2

INDIA

Terror strike in Punjab

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JeM outfit struck at an Indian Air Force base in Punjab in which three security men were killed. >A9

MARKET Indian skater from Oman wins six medals

A2

N E W A P P L I C AT I O N

Indian envoy unveils mobile app for workers in distress Staff Reporter MUSCAT: MigCall, an androidbased mobile application, which instantly saves helpline numbers in smartphones for link with the Indian embassy, was launched by Indian ambassador Indra Mani Pandey, here on Friday. Embassy’s helpline Urging expatriates to use the app, the Indian ambassador said: “Indians should download the app and spread the app news so that they can access the embassy’s helpline numbers in their smartphone call list and just dial for help when they are in distress.” The app was unveiled at the Indian embassy auditorium on Friday evening. More than 300 people, including 250 workers from different company camps, attended the function. “It is a useful app. Not

USER-FRIENDLY: Indian ambassador Indra Mani Pandey watches the salient features of the MigCall app, on Friday. – Jun Estrada

only for workers, but any Indian can be connected to the embassy,” Shafi Kaipuram, who brought some 40 Indians to the function, told Times of Oman. The mobile app ‘MigCall’, based

investment expenditure which constituted roughly 1/3rd of the total budgeted public expenditure in 2015,” a financial expert told Times of Oman. “This results in lesser government projects in which private companies can participate. All these may lead to lower revenues, lesser profits and lesser employment especially for companies which depend on government projects. It may even trigger a contraction in the economy consequent to overall fall in demand,” the expert said. >A6

reach OMR3.3 billion.

OMAN

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REVENUE SHORTFALL: The deficit of the budget is expected to

TOP THREE INSIDE STORIES

MSM declined by 14.77 per cent or 937 points to close at 5,406.22 points last year. >B1

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Oman faces up to new economic reality in 2016

The subsidies

the amount approved

MSM index falls 15%

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State budget focuses on austerity, non-oil income

Chances of rain in Oman MUSCAT: Hail, thunderstorms and rain are expected in Oman from Sunday, which will continue for two days, according to the weather update by Oman Meteorological Department. The depression, which will hit Musandam, is likely to affect Muscat, North and South Al Batinah, Al Buraimi and Al Dhahira governorates.

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on the Android OS platform with a file size of 2.8 MB, is available at Google Playstore in various Indian languages, such as Hindi, Malayalam, Tamil, Telugu, Kannada and Bengali and English. >A6

billion and operation expenses of OMR1.1 billion. The spending on development projects is estimated at OMR1.35 billion represents the cash to be spent during the year. The reduction in project investment amounts to 18 per cent compared to 2015 budget. The total provision for security and defence expenses is estimated at OMR3.5 billion, 12 per cent fall compared to 2015 budget. The defence expenditure comprises salaries and entitlements of employees besides the operation expenses and capital expenses. The subsidies are estimated at OMR400 million, a reduction of

OMR710 million (or 64 per cent) compared to the amount approved for 2015 budget. Further, OMR240 million is allocated for other expenses, a reduction of 10 per cent. The deficit of the budget is expected to reach OMR3.3 billion, which is 38 per cent of the total revenue and 13 per cent of the gross domestic product. The deficit will be covered through borrowing from both domestic and overseas markets. Focus on austerity In a move to reduce expenditure, the state budget proposed to amend the local prices of fuel to make such prices conform to the global prices,

to suspend expansion of organisational structures at the ministries and government units, to postpone the award and execution of unnecessary or unimportant projects, to cancel family cars and tour vehicles allocated for ministers, undersecretaries and senior officials, to cancel allocation of government vehicles for some positions and instead pay conveyance allowance determined as per the approved regulations, to prohibit the use of government cars after office hours and to review the fleet of vehicles of each government unit in light of the actual need and to return the extra vehicles to the Ministry of Finance. >A4


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Times of Oman - January 3, 2016 by Muscat Media Group - Issuu