Oman cuts 2016 spending in light of lower oil prices

Oman will cut spending this year by 15.6 percent in the face of lower oil prices but still face a huge deficit after posting one in 2015, Finance Minister Darweesh al-Bloushi said.

Spending is projected at 11.9 billion riyals ($30.9 billion/28.3 billion euros) in 2016 compared with $36.6 billion, a statement from Bloushi said.

Revenues are projected at 8.6 billion riyals ($22.3 billion), down a massive 26 percent from 2015, resulting in a deficit of $8.6 billion, said the statement cited by the official ONA news agency.

Oman’s deficit last year was $11.7 billion.

Gulf States have been hit hard by a cash crunch due to a 65-percent drop in oil prices since June 2014.

Most of them have introduced austerity measures, and Oman said Wednesday it has decided a series of measures to boost non-oil revenues.