Oman cuts 2016 spending in light of low oil prices

Spending is projected at $30.9 bn in 2016, revenues projected at $22.3 bn, down by 26% from 2015, resulting in an $8.6 bn deficit

Muscat: Oman will cut spending this year by 15.6% in the face of low oil prices but still face a huge deficit after posting one in 2015, finance minister Darweesh al-Bloushi said.

Spending is projected at $30.9 billion in 2016 compared with $36.6 billion, a statement from Bloushi said

Revenues are projected at $22.3 billion, down a massive 26% from 2015, resulting in a deficit of $8.6 billion, said the statement cited by the official ONA news agency .

Oman’s deficit last year was $11.7 billion.

Gulf states have been hit hard by a cash crunch due to a 65% drop in oil prices since June 2014.

Most of them have introduced austerity measures. Oman said on Wednesday that it has decided a series of measures to boost non-oil revenues.