H E Darwish bin Ismail al Balushi, Minister Responsible for Financial Affairs, has announced Oman’s state budget for the year 2016. According to a statement posted on Oman News Agency, the 2016 state budget includes total public spending of OMR11.9 billion, nearly 15.6% lower compared to 2015 public spending, which was at OMR14.1 billion. Government’s total estimated revenue for the year 2016 is RO8.6 billion. H E Balushi said that 2016 general budget estimates a deficit of RO3.3 billion, compared to an actual deficit of RO4.5 billion for the year 2015. The total revenue is estimated at OMR8.6 billion, a fall of 4% 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% of the total revenues. The non-oil revenue estimates for 2016 amount to OMR2.45 billion, representing 28% of total revenue estimate. The non-oil revenues are expected to reach OMR1.9 billion in 2015. The expenses for oil and gas sector are estimated at OMR1.79 billion, a 14% 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% compared to the budget estimates for 2015. This figure included salaries and entitlements of employees at OMR3.3 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% compared to 2015 budget. The total provision for security and defence expenses is estimated at OMR3.5 billion, 12% fall compared to 2015 budget. 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. The subsidies are estimated at OMR400 million, a reduction of OMR710 million (or 64%) compared to the amount approved for 2015 budget. Further, OMR240 million is allocated for other expenses, a reduction of 10%. The deficit of the budget is expected to reach OMR3.3 billion, which is 38% of total revenue and 13% of the gross domestic product. The deficit will be covered through borrowing from both domestic and overseas markets. (Times of Oman, Muscat Daily)