IMF expects Oman’s budget deficit to drop to 2.4%

The International Monetary Fund predicts that the deficit and financial debt in the Sultanate of Oman will decrease dramatically, after increasing last year, thanks to the country’s implementation of a medium-term plan to reform its financial conditions, affected by the “Covid -19” pandemic and drop in oil prices.

The fund expected, in a statement released today, Sunday, that the deficit would decrease to 2.4 percent of GDP questyear from 19.3 percent in 2020 and that the country would reach a surplus next year.

“Central government debt has risen to 81.2% of GDP and funding needs have been covered by internal and external loans and asset withdrawals, but a sharp decline is expected in the medium term,” the statement said.

Since the collapse of the oil price in 2014, the debt-to-GDP ratio has increased from 15% in 2015 to around 80% last year.

But last year the Sultanate took a number of steps to reform its financial situation, including the introduction of a value added tax.

This has contributed to its access to global debt markets and raising billions of dollars, both in loans that in bonds questyear, despite the growing budget deficit.

The development of the sustainable framework takes place in amid a growing awareness among international investors of the environmental and social risks associated with governance and the efforts of the oil-producing Gulf region to attract capital for low-carbon and environmentally sustainable investments.

Oman stated in its economic development plan of questyear, “Vision 2040”, which aims to rank among the top 20 countries in the global environmental performance index by 2040.

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