Muscat: Oman has achieved positive outcomes and indicators in 2021 as a result of government measures and efforts towards achieving national objectives. Such an approach, if maintained, will ensure better outcomes in 2022
Ministry of Labour
1. Ejadah, which will be implemented in January 2022, aims to develop human resources by linking incentives and rewards with the level of productivity.
Ministry of Transport, Communications and Information Technology
1. Launching a unified guide for government services.
2. Launching the first package of electronic services through the unified government platform.
3. Launching the national platform for suggestions and complaints.
4. Initiatives and activities for space exploration.
Ministry of Economy
1. Follow up on the implementation of strategic programmes.
2. Governorate Development Programme
SMEs-related measures (2022):
1- Drafting SMEs Law.
2- Introducing funding regulations.
3- Introducing Riyada Card regulations.
4- Announcing incubator-related regulations.
5- Introducing Sanad centres regulations.
6- Launching group financing platforms.
7- Supporting craft industry and one-person industry.
Fiscal performance improvement measures:
The financial challenges faced by the Sultanate of Oman have prompted the government to reconsider the priorities and align the objectives in accordance with Oman Vision 2040. Therefore, the government has taken a set of measures in order to achieve fiscal sustainability while improving financial indicators and maintaining social welfare. Such measures can be illustrated as follows:
Revision of Financial Law and Executive Bylaws:
In light of modernizing laws and revising the regulations pertaining to economic and financial aspects, alongside the restructuring of the State’s administrative apparatus, the Financial Law and its Executive Bylaws are under revision in order to address the recent changes and to regulate the financial systems developed by the Ministry of Finance. Some of the systems include Programme-Based Budget, GFMIS, and Treasury Single Account.
Public Debt Law
This law aims to manage the funding the government obtains as a loan from banks, financial institutions, and individuals to finance its public expenditures. The law also aims to:
Regulate and manage public debt operations.
Diversify the sources of funding.
Monitor the level of indebtedness and associated risks.
Improve the cash flow management mechanisms.
Government Financial System (Maliyah)
Maliyah is a modern system for managing public finance. The government units use Maliyah for planning, implementing, controlling and reporting on the State’s budget. It will act as an information technology platform for the application of the rules, policies, procedures, and operations of public finance management. The features of Maliyah can be summarised as follow:
Provide accurate, reliable, timely, and consistent financial information that supports the financial and economic decision-makers in creating fiscal policies, strategies, fiscal decisions, and discipline to achieve economic diversification and fiscal sustainability.
Develop a modern financial accounting and reporting system using a unified Chart of Accounts (CoA) and new budget classification which is in line with Government Financial Statistics (GFS).
Enable better cash management and effective utilization of public funds by implementing and using cash forecasting (revenues and expenditures) and streamline treasury banking operation under the Treasury Single Account (TSA).
Program-based Budget (PBB)
An advanced approach of financial planning that identifies public spending priorities and links spending to objectives and activities. The advantages of the PBB are as follows:
Link the national objectives of Oman Vision 2040 and targets of the Five-Year Development Plans within the annual programmes and activities of government units.
Reflect on the public policies and objectives within the budget. Link the objectives and outcomes with the required spending.
Provide authenticated data about the government’s performance.
Connect financial planning with public policies.
Organize government programmes and activities, and integrate the efforts to prevent duplication.
Flexibility to allocate resources as per tasks and activities.
Raise the efficiency of financial and administrative control.
National Register of Government Assets
The register is an integrated central system, seeks to take full account of government assets and draft a strategy to maximize returns. The Sultanate of Oman is among the leading countries to establish an integrated central system for managing government assets. The register aims to:
1. Register and determine the actual value of government assets.
2. Generate more financial resources.
3. Centralise government assets management and enhance its efficiency.
4. Secure more financial resources for the state budget.
5. Identify the government assets for privatization and public-private partnership (PPP).
Fee Setting Policy Handbook
The Fee Setting Policy Handbook comes as a unified and clear framework to standardize the pricing of government services, which would serve as a reference for the government units. Some other entities — such as OIA, pension funds, investment funds, and free zones — can use the handbook when pricing their services.
In its first phase, the handbook was applied to the Ministry of Heritage and Tourism, Ministry of Commerce, Industry and Investment Promotion, and municipalities sector, which resulted in the following:
A reduction and cancellation of 548 services fees.
Merging some municipal licenses. This entails that similar business activities will no longer require separate licenses.
Shifting 88 percent of services provided by the Ministry of Commerce, Industry and Investment Promotion to Invest Easy platform.
The merger of Pension Funds:
Pursuant to the Royal Decree No (33/2021) on systems of retirement and social security, a civil pension fund for public and private sectors shall be established under the name “Social Security Fund”.
In addition to, the establishment of a fund for military and security under the name “Military and Security Services Retirement Fund”.
Main objectives:
1- Creating comprehensive social protection coverage.
2- A unified methodology for investment management.
3- Enhancing investment capacity and efficiency.
Common Contract
The Common Contract is an initiative aimed at modernising the standard contracts of various government units, in accordance with the latest practices adopted by the International Federation of Consulting Engineers (FIDIC).
Highlights of Common Contract:
Updating contract clauses as per the international practice so as to facilitate the process and save money and time.
The Common Contract is drafted in Arabic and English in one document.
Easy to obtain a copy of the contract via MOF’s website.
Ability to electronically fill the required data.
Central Government Procurement
This initiative seeks to identify a central unit with the aim of integrating government procurements and contracts for all government units. The unit shall carry out the following:
-Controlling all government procurement and contracting process.
-Enhancing purchasing power of the unit so as to be able to negotiate the quotations.
-Establishing a direct link with the main suppliers and service providers.
-Monitoring government inventory efficiently.
-Reducing public expenditures and the number of staff working in procurement departments.
-Building a close relationship with suppliers and enhancing training and support potentials.
-Migrating to e-business for key processes such as tendering, contracting and payment transactions.
Supply Chain Financing
(SCF) Scheme
The Ministry of Finance is working with a group of banks, primarily based in the Sultanate of Oman, to provide a simple and effective financing solution to the suppliers under contract with various government units. The objective is to offer the suppliers an alternative option of getting their invoices settled in a timely manner without signing any financing agreement with the banks. The bank shall transfer the funds directly to the bank account of the supplier and then the Ministry of Finance will repay the funds to the same bank.
Tafakur Platform
An e-platform that aims to promote community participation between the government and society by receiving ideas, suggestions and solutions that will help improve public financial management and achieve fiscal sustainability. The platform targets, during the pilot phase, all employees of the MoF and the target group will expand later depending on the outcomes of the pilot phase.
Treasury Single Account
The Treasury Single Account (TSA) is a unified structure of government bank accounts, deal with government revenue and expenditure on a daily basis, thereby allowing for an optimal use of government cash resources. The TSA aims to:
-Enhance the efficiency of government cash management, by utilising the unused cash.
-Improve monitoring the implementation of the State’s budget through providing accurate information on the expenditure and revenue.
-Reduce fees and costs of banking transactions.
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