Breaking News

Asia Today ISSN 1861-4604 Friday, October 19, 2018


Oman plans to reduce subsidies next year, says finance minister

Ineffective subsidy system

Share on Facebook October 26, 2014, Reporter : BigNewsNet, Reader : 635

Darwish bin Ismail Al Balushi. Photo: Times of Oman news

Kuwait City: Oman's government is likely to start cutting some state subsidies next year as the decline in global oil prices pressures its finances, Minister Responsible for Financial Affairs Darwish bin Ismail Al Balushi said on Saturday.

The country's original budget plan for 2014 assumed the government would run a deficit with an average oil price of $85 a barrel. For most of this year the oil price has been much higher, but in the last few months it has dropped steeply to as low as $82.

Ineffective subsidy system
Oman has been considering ways to reform its costly and sometimes wasteful subsidy system, though reductions in spending would be politically sensitive. Asked by Reuters whether cuts were likely next year, Balushi said; "Yes, I think the time is probable and especially with the decline in oil prices.

"I think the people would be more understanding now, more accepting. They realise that this was natural wealth that is being overused, wasted..." In an interview on the sidelines of a meeting of Gulf Arab finance ministers and central bank governors in Kuwait, Balushi also said the current subsidy system was ineffective because it did not focus on poorer people.

"Everybody gets, people who deserve and people who do not. I think if we rationalise it and use the saving for better priorities, that will definitely have a return for the people of Oman."

The subsidy reforms will proceed gradually and make sure people who deserve state aid are not affected, Balushi said.

He did not give details of which subsidies would be cut, but in the past has described petrol as an obvious target.

More Euro Asia news of the month

Photos Oman fixes local oil products sale price for April 2016

Muscat,31st March, 2016 (WAM) - The committee in-charge of studying and fixing the sale price of oil products in Oman has approved...

Photos Oman criticizes Saudi Arabia for cutting ties with Iran

January 4, Trend: Oman's Ambassador to Tehran Saud bin Ahmad al-Bardani criticized Saudi Arabia for severing relations with Iran,...

Photos Turkmenistan, Oman to create intergovernmental commission on economic co-op

Ashgabat, Turkmenistan, June 11 By Huseyn Hasanov– Trend: In order to ensure integrated approach to the expansion of cooperation,...

Photos Uzbekistan-Turkmenistan-Iran-Oman transport corridor establishment discussed

Tashkent, Uzbekistan, Feb. 18 By Demir Azizov– Trend: An Uzbek delegation took part in the first meeting of the Coordinating...

Photos IRGC forces US to change its naval strategy - naval commander

Jan. 18 By Umid Niayesh - Trend: Iran’s Islamic Revolutionary Guard Corps (IRGC) is capable of sinking the US aircraft carriers,...

Photos Iran to host Gas Exporting Countries summit in 2015

Dec. 30 By Umid Niayesh - Trend: Iran will host the third meeting of the Gas Exporting Countries Forum (GECF) , which is scheduled for...

Photos Largest cake in Oman

OMAN: 44-metre-long cake was made with 4,440 eggs, 400 kg of sugar and 400 kg of flour — By Kabeer Yousuf — MUSCAT —...

Photos Uzbekistan, Oman to hold intergovernmental commission meeting

Tashkent, Uzbekistan, Sept. 8 By Demir Azizov- Trend: The second session of the Uzbek-Omani intergovernmental commission for economic...

Photos Oman, Iran hold joint military meeting

Baku, Azerbaijan, April 7 By Umid Niayesh - Trend: The Omani-Iranian Joint Military Friendship Committee's meeting began in Muscat...

Flying Reimagined

Stock Index

Friday, October 19, 2018

Life Style

Photo Gallery