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English news

03-Jul-2016

Shura Council recommends downsizing government

A special committee of the Shura Council for studying the effects of lower oil prices has recommended the merger of a number of ministries and government bodies as well as an end to honorary supervisory positions in government institutions. According to a statement issued by the committee, it has called for the lifting of subsidies given to government-owned companies as well as applying zero-based budgeting, in which all expenses must be justified for each new period, and every function within the organisation is analysed for its needs and costs. The committee has called for the consolidation of the government’s work by downsizing through mergers. It has made at least eight merger recommendations affecting at least 17 ministries and government authorities, and called for the establishment of new bodies and ministries to replace old ones. It is not clear how the move is expected to affect the government workforce and the jobs of ministers whose offices may be made redundant. As in neighbouring Gulf countries, a large number of Omanis rely on the bloated public sector for employment. Following the protests of 2011, Oman’s Sultan Qaboos promised 50,000 new jobs for Omanis in the public sector, raised the minimum wage and promised to fight corruption. Experts have said that given the population growth, the Sultanate needs to create about 50,000 jobs annually to reduce unemployment, estimated at 15%, from rising any further. (Zawya)

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