Muscat: The Sultanate has announced its General Fiscal Budget for the year 2021 that focuses on taking cautious measures and a sustainable approach towards achieving Vision 2040.

The new budget elucidates a general expenditure that is estimated at around RO10.880bn, which marks a decrease of 18 per cent compared to the estimated expenditure of 2020.

Meanwhile, total revenues of the budget for 2021 are estimated at RO8.6bn that have been calculated at average oil prices of US$45 per barrel. This marks a decrease of 19 per cent compared to the revenues of 2020.

The estimated budget deficit of RO2.240bn represents 8 per cent of the GDP. Seventy-three (73) per cent of this deficit (which amounts to RO1.6bn) will be fronted through domestic and foreign borrowing while the rest of it, which represents RO600mn, will be withdrawn from reserves.

It was also noted that the current expenses for defense and security units were reduced by 5 per cent. Albeit, the total expenses for ministries and civil units amounted to about RO900mn.

The State’s General Budget for 2021 was formulated with the aim to reduce debt, control deficit, achieve the first phase of financial sustainability measures, and implement spending rationalisation measures.

It will also focus on ensuring the sustainability of present social services by maintaining a level of spending of no less than 40 per cent in those services and taking into account the social and economic impact, and applying the social protection system to categorise those that may be effected by the measures and initiatives taken.