The International Monetary Fund (IMF) called on the Sultanate of Oman to formulate a plan to settle the financial situation, based on reforms to address the current stagnation.
In a statement following the conclusion of Article IV consultations with the Sultanate, the IMF stated that the objective of the basic plan is to address the wages and support, rationalize public investment and mobilize more non-oil revenues.
Article IV of the IMF Establishment Agreement stipulates the entering in bilateral discussions with member countries, usually on an annual basis.
The statement pointed out that the Sultanate of Oman "is now required to accelerate in the implementation of the value added tax and the measures to control the growing government spending.”
The preliminary data for the country's budget indicate an improvement in the overall fiscal balance of last year "and the fiscal deficit is estimated to fall by 9% comparing to 13.9% in 2017.", according to the IMF.
The statement stipulates "However, there have been some violations in the spending and a lack in the tax revenues compared to the budget estimates; while the primary balance (non-oil) declined as a result of the high levels of spending."
The non-oil economic growth shrank by 0.5% in 2017, while the IMF expects it to grow to 1.5% in 2018.
The statement pointed out that the reduction in the fiscal deficit in 2019 by 8%, despite the low oil prices may be through the reduction in spending, and the introduction of a new system of selective taxes on some selected products.
#International_Monetary_Fund #Oman #finances
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