Times of Oman - January 6, 2015

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TUESDAY, January 6, 2015 / 15 Rabi Al Awal 1436 AH

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Oman ‘gets real’ over oil in the 2015 state budget The annual budget document released

State Budget breakdown (in million OMR)

Crude oil

Natural gas

Current and other revenues

7,700

1,460

2,440

shows details how much Oman expects to make from oil, plus what it will spend

TOTAL REVENUE AND DEFICIT

14,100

Deficit 2,500

A. E. JAMES

TOTAL EXPENDITURE

14,100

A E JAMES

Revenue 11,600 Current Expenditure 9,576

Defence and Security

Civil Ministries

3,800

5,166 350 210

Natural gas will generate another OMR1.46 billion, OMR2.38 billion from current revenues, OMR25 million from capital revenues and OMR35 million from capital repayments, taking the total revenue to OMR11.6 billion, according to a budget document released by the Ministry of Finance. The budget document also said that current expenditure allocation for defence and security will be to the tune of OMR3.8 billion; civil ministries will get another OMR5.17 billion, OMR350 million for oil production, OMR210 million for gas produc-

Oil Interest Gas production production in Loans

ePassports with more security features for Omanis this month fahad@timesofoman.com MUSCAT: To enhance the security features in passports, the Royal Oman Police (ROP) is set to launch the electronic passport by the end of this month. The process for the introduction of ePassports began in April 2014 in compliance with the International Civil Aviation Organisation (ICAO) standards — the specialised agency of the United Nations. “The ePassport will provide a citizen with enhanced protection since it cannot be forged. It will include photograph and personal information of the passport holder with high security features,” an ROP official told Times of Oman. The official said that the ePassport will use smart card technology, and will include a microchip that will not only detect manipulated documents but also confirm the identity of the person. The passport holder’s personal infor-

E-Passport anatomy

Looks like a traditional passport, but it contains an electronic chip encoded with surname, given name, date of birth and sex. Also includes a digital picture of the bearer's face. Electronic chip

The electronic chip increases security, provides greater protection against tampering and reduces the risk of fraud.

Laminate Person ID

Antenna Graphics

mation, photograph, biometric information and digital security features stored in the chip will help detect fraud if any. The ROP has signed a contract with a German firm for the ePassport project. The official said that the elec-

tronic visa for expatriates was launched in mid-2014. It aims at simplifying the process of online application without the need to go to the ROP, enhances security, helps maintain visitors’ database and automatically collects the fee. TOP THREE INSIDE STORIES

OMAN

Passengers stuck

1

Passengers on Air Arabia flight from Salalah to Chennai are reportedly stranded at Sharjah airport. >A2

OMAN

ROP marks annual day

A6

Corrigendum In the article titled ‘Government plans sale of stake to meet OMR2.5 billion deficit’, published in Times of Oman on January 5, there was a wrong reference to National Aluminium Products Co as one of the firms identified for share sale. The company is not owned by Oman government. The error is regretted.

Tracking of patients

2

Government hospitals and health institutions have begun tracking patients using electronic health file. >A3

OMAN

Iran’s exhibition

3

Iran’s largest-ever exhibition in the GCC will open in Muscat on Tuesday. >A5

Investment expenditure

50 3,214

tion and another OMR50 million for interest loans. As far as investment expenditure is concerned, allocation for civil ministries is estimated at OMR1.69 billion, oil production and gas production estimates at OMR780 million and OMR740 million, respectively, taking the total investment expenditure to OMR3.21 billion for 2015. The document also gave a break-up of subsidies given by the government to various sectors, which include an interest subsidy of OMR35 million for housing loans, allocation for participation

SMART CARD TECHNOLOGY

FAHAD AL MUKRASHI

M AU R I TA N I A

HM receives thanks MUSCAT: His Majesty Sultan Qaboos bin Said has received a cable of thanks from President Mohamed Ould Abdel Aziz of Mauritania in reply to His Majesty’s congratulatory cable on his country’s 54th Independence Anniversary. In his cable, President Abdel Aziz expressed his utmost happiness and sincere thanks for His Majesty the Sultan’s sincere feelings, praying to Allah to grant His Majesty good health and happiness and the Omani people further progress and prosperity. -ONA

businesseditor@ timesofoman.com

businesseditor@timesofoman.com MUSCAT: Detailed plans for how Oman will make its money in 2015 -- and what it will spend that cash on -- have been officially released. The State’s general budget was quietly released yesterday on the website of Ministry of Finance and details everything from spending on education, defence and government operations to how much the Sultanate intends to borrow this year. It also reveals how calls to revise oil revenue expectations for 2015 have been heeded, and even exceeded, with the budget relying on an estimated price of $55.9 per barrel, far below the $80 called for by the Majlis Al Shura. That $55.9 figure is based on Oman’s plan to produce 980,000 barrels per day of oil, as indicated by Salim bin Said Al Oufy, the undersecretary at the Ministry of Oil and Gas, back in November. That will add OMR7.7 billion to Oman’s coffers this year.

OMR600m budget deficit in 2014

ISO 9001:2008 Certified Company

Subsidies and participation

1,310

in domestic, regional and international institutions at OMR200 million, support for government companies at OMR180 million, subsidy for essential food items at OMR35 million, electricity at OMR280 million and petroleum products at OMR580 million. In fact, there has been a decline in fuel subsidy as the recent plunge in crude price narrows down the gap between the rate at which oil is sold in the country and outside. The government is going to rely on reserves and borrowing from within the country and overseas markets for meeting

MUSCAT: Oman is predicted to close 2014 with a deficit of around OMR600 million, in view of a 7 per cent growth in public expenditure (over the initial approved budget) and the drastic fall in crude oil prices in global markets. >A6

a major chunk of subsidies. Of the total OMR2.5 billion deficit, OMR200 million will be by way of net grants, OMR200m net foreign borrowing, OMR400m net domestic borrowing, OMR1b financial surpluses allocation and reserves of another OMR700m. According to the Ministry of Finance, taxes and fees will fetch OMR1.334b, which include OMR500m by way of taxes, OMR330m customs duty, OMR245m from fee on foreign workers’ labour licences, OMR50m from telecommunication royalty fee and OMR30m from transport licences.

Oloum Al Shabiba launch today MUSCAT: To keep abreast with the latest local, regional and international developments and to provide people with timely news, Muscat Media Group will launch today, its new press service, Oloum Al Shabiba (Al Shabiba News) Bulletin. The video bulletin will be available at the Group’s channel on the Youtube, its website, and webpages of the social media. With latest news, the bulletin will sum up major events and incidents three times a day.


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