Government vehicles in Oman to be tracked to reduce expenditure

Muscat: Government vehicles will now be tracked in an attempt to control expenditure, with the Ministry of Finance issuing a circular in this regard after noticing a jump in the expenses incurred by government vehicles recently.
All public authorities and institutions in Oman will have to install a tracking system in government vehicles, according to a financial circular (17/2016) signed by Darwish bin Ismail bin Ali Al Balushi, Minister Responsible for Financial Affairs.
The ministry stated that the decision has been taken to cushion the economy, which is struggling due to low oil prices, especially as the public expense report until last May showed an increase in the expenses of government vehicles reflected in the expenses for fuel consumption, maintenance and spare parts.
The statement also mentioned that some government units have already installed tracking systems, which are doing well to monitor the vehicles and their expenses. This will help in controlling the public expenses. The ministry’s statement included two directions for all public authorities and institutions to install a tracking system on all government vehicles and also periodically monitor the use of the vehicles to control public expenses in this regard.
Benefits slashed
Different measures have been adopted by the government to cope with the current financial situation of the country.
The Finance Ministry has issued 17 circulars in 2016 so far to control expenses in which employees working at state-owned institutions and public authorities, which get half or more of their funding from the government, and institutions in Oman saw a number of their benefits being slashed. Benefits, such as school fees, mobile phones and bills, annual medical check-ups for employees and families, provision of private cars to senior managers, annual travel tickets, housemaid allowances, house rents, furniture allowances, credit cards for CEOs, hospitalisation fee and other allowances have been stopped temporarily.
Oman recorded a deficit of OMR1641.3 million during the first quarter of this year, compared with OMR541.6 million recorded during the same period in 2015, due to a slide in oil prices. With break-even crude oil prices of $75 per barrel for the 2016 budget, Oman will need to deal with its OMR3.5 billion deficit.
Registration of government vehicles was up by a significant 52.1 per cent in the first quarter of this year, compared with the same period last year, according to the National Centre for Statistics and Information (NCSI).