Oman's finance ministry has told all ministries and civilian government units to reduce approved liquidity for development budgets by 10 percent, state media said on Wednesday.
It also said in a circular that the creation of government companies performing business activities would cease and priority would be given to the private sector.
On Tuesday, Oman had told all government agencies to cut their operating budgets by at least 10 percent this year to counter a slide in oil prices, including by reviewing salaries and benefits.
The new announcement came after the finance ministry said last month that it was cut by 5 percent the budget allocated to government agencies for 2020.
“Based on the government’s decision to reduce the approved budgets of civil, military and security agencies for the year 2020 by 5%, the Ministry of Finance would like to inform all government agencies that the aforementioned percentage has been deducted from the approved budget for each agency,” a finance ministry circular dated March 12 said.
Oman’s economy is particularly vulnerable to oil price swings, which now add to expectations of a regional and global economic slowdown due to the coronavirus outbreak.
Rating agencies Moody’s and Fitch last month cut Oman’s rating further into junk territory, citing continued erosion of the country’s fiscal and external balance sheets.
