5pc spending cuts likely in budget

MUSCAT: The Finance Ministry is looking at cutting expenditure again in the state budget for next year to reduce a deficit caused by low oil prices, sources said on Tuesday. A draft budget for 2017 foresees a five-per cent cut in spending from this year’s budget and no increase in revenues, the sources said. The draft assumes an average oil price of $45 per barrel. The ministry declined to comment on its 2017 budget plan, which is expected to be released around the end of this year or early next. The 2016 budget envisaged a state expenditure of RO 11.9 billion — down 11 per cent from actual spending in 2015 — and revenues of RO 8.6 billion. — Reuters