Monday, December 2

News Flash: Oman budget crunch

I had originally decided to avoid anything to do with politics, and any relation that would place my beloved country in a controversial situation among the people of Oman. Yet I couldn't resist this topic, since it is based on future predictions of the countries financial situation, and that we may have to revert to international borrowing though we have stopped doing so as a nation since 1997.

An article link here caught my attention titled "Mideast money- Looming budget crunch pushed Oman toward debt market" I think that its enough of a shocker to wake the sleepers of this society.

The highlights from the article are:
* Public wage bill jump puts new pressure on state finances
* Pressure heavier on Oman than other wealthy Gulf states
* May start posting budget deficits in 2015, conceivably before
* Low outstanding debt level, Gulf aid mean crisis not imminent
* Oman will have to start making tough policy choices

Few snippets of the article from Reuters.

"When Oman's finance minister declared this month that the public sector wage bill might jump $2.3 billion next year - money which the government had not yet found - it was a fresh sign of a budget crunch looming in the Gulf state." source

"Oman, with a population of about 3.9 million, over a third of them foreign citizens, faces a tougher financial outlook in coming years. It may force the country to resume borrowing in international markets next year for the first time since 1997" source

"The International Monetary Fund predicted in October that Oman would slip into a fiscal deficit of 0.2 percent of gross domestic product in 2015, widening gradually to as much as 7.1 percent or about $6.8 billion in 2018 - but that was before the additional public wage expenditure was revealed." source

Apparently we wont be the only Gulf country suffering, but while other neighbouring nations have the reserves to sustain such deficits we on the other hand may struggle.

Somehow I am fearful of whats to come, yet resilient like my nation and its leader that the best judgements have been made. Am I being naive? Can we sustain this budget crunch?

ايش اللقطه

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