MUSCAT: The Sultanate of Oman is looking at oil prices staying high this year to fund heavy spending on job creation and social welfare according to its growth plans based on 2013 budget.
Finance Minister Darwish Al Balushi said Oman, whose revenues come mostly from oil and gas exports, would need an oil price of $104 per barrel in 2013 to balance its state budget, Gulf Daily News reported Thursday.
This 'break-even' oil price has been rising since 2011.
Brent crude oil was trading at $112 in global markets yesterday.
"Last year we created 36,000 jobs for Omanis by spending 300 million Omani Rials ($780m)," Balushi said. "This year we will create 56,000 jobs, of which 20,000 will be in the government sector."
Oman envisages total state spending of 12.9 Billion Omani Rials in 2013. Actual state expenditure last year was around 13 Billion Omani Rials.
The government was able to overspend its budget by a large margin and still post a budget surplus of about 1bn Omani Rials in 2012 because oil prices were high, averaging $109 per barrel.
This year's budget is based on an average oil price of $85 and envisages a deficit of 1.7 billion Omani Rials, the GDN report added. (QNA)
