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Oman suspends new development projects as low oil bites

31-03-2020

Oman has announced several major steps to alleviate the impact of slumping oil prices on its finances including the suspension of new projects, as well as capital expenditures for the year pending the re-evaluation of these projects in the next fiscal year, said a report.
 
The Ministry of Finance has issued a circular directing all state-owned companies to implement recent Royal directives including a cut in spending, boosting revenue earnings, and thereby reducing the budget deficit, reported Oman Daily Observer.
 
The circular stated that the goals should be achieved by:
*Reducing the operating and administrative expenditure approved for the financial year 2020 by 10 percent; 
*Suspending the implementation of new projects, as well as capital expenditures for the year pending the re-evaluation of the projects in question in the next fiscal year; 
*Suspending all external training programmes and participation in workshops, conferences and exhibitions; and 
*Slashing allocations towards official missions by no less than 50 per cent.
 
The ministry also stressed the need for all state-owned companies to submit revised operating budgets before the end of April incorporating the spending cuts enumerated, the report added.



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