Oman sees $6.47b budget deficit amid oil slump

MUSCAT, Jan 2 (AFP): Non-OPEC member Oman yesterday announced a budget deficit for 2015 of $6.47 billion (5.35 billion euros), reflecting the effect on Gulf producers of plummeting crude oil prices.

The budget includes expenditure of $36.5 billion, up 4.5 per cent from 2014, and revenue of $30.03 billion, down 1.0 per cent, the official ONA news agency cited the finance ministry as saying.

The projected deficit will represent 21 per cent of public revenue and 8.0 per cent of the sultanate's GDP.

Oman is a small producer of crude, at about one million barrels per day.

Current expenditure accounts for the lion's share at 68 per cent of public spending, far ahead of investments (23 per cent), the ministry said.

Because of the falling price of oil -- which brings in 79 per cent of Muscat's revenues -- the government had to "take preventative measures... to preserve financial and economic stability", the ministry's statement said.