“Of the total public spending budgeted of about RO12.5bn, the allocations approved for these sectors are estimated at RO3.88bn. This represents the largest share of the budget due to the significant importance of these sectors for citizens,” the Ministry of Finance said.
National Training Fund
“The government gives special emphasis to the training of Omani job seekers in order to enhance their skills and capacities so that they can join the labour market. In this respect, the National Training Fund has been established, and an amount of RO62mn has been allocated to cover the cost of training programmes,” the statement said. These training programmes are to adopt the latest global approaches for training and on-job training. The fund is currently training the first batch consisting of 4,300 people and various companies have been roped in to employ them after training.
Recruitment
In the light of the decision made by the Council of Ministers, upon the Royal Directives, to provide 25,000 job opportunities for the youth, an executive programme has been adopted to implement the decision. The programme will run until the first half of 2018. Until the end of December 2017, around 4,800 job opportunities have been provided in the private sector. The employment in public sector shall only be based on need basis, and in line with the budget.
Housing schemes
An amount of RO80mn has been allocated to continue implementing the Social Housing Scheme and Housing Aid Program for eligible citizens, as well as housing loans provided by the Oman Housing Bank. Moreover, the appropriations of housing and development loans amounts to about RO30mn.
Fuel subsidy
With respect to fuel subsidy for eligible citizens, the required appropriations shall be allocated to cover the subsidy in accordance with the approved mechanisms. The appropriations allocated for subsidies are estimated at RO725mn compared to RO330mn in the 2017 budget. This is due to the increase in electricity subsidy to meet the growth in consumption. This includes subsidies for cooking gas, housing and development loans among others.
Development
A key project is the new Muscat International Airport set to operate this year. “This airport, as one of the strategic projects, will bring about a paradigm shift within tourism and logistics sectors in Oman,” said the statement. The first phase of the Batinah Coastal Road project, including the compensation for the people affected by the project is complete. Batinah Expressway project is under way. The Bidbid-Sur dual carriageway project, including four tunnels in Wadi al Uq is complete. The current projects of roads shall contribute to achieve Oman Logistics Strategy 2040 (SOLS 2040), which seeks to enhance the contribution of logistic sector to GDP. Liwa Housing project is under way. Water networks are being laid in various wilayats. In partnership with the private sector, agreements have been signed to construct three new hospitals, namely Sultan Qaboos Hospital at Salalah, Al Suwaiq Hospital and Khasab Hospital.
Despite continued economic challenges posed by the geo-economic factors since mid-2014, the State’s General Budget for FY 2018 coincides with a gradual economic recovery. The budget endeavours to achieve fiscal sustainability and sustainable growth, as well as stable standard of living.