Friday 09 / May / 2025
Muscat: The State Council on Sunday referred the Draft State’s General Budget for FY 2021 to the Council of Ministers, along with the recommendations of the State Council and Majlis Al Shura. The Council also discussed the report of the Expanded Economic Committee on the draft budget, with the addition of amendments.
In his opening speech, the Council Chairman welcomed the members, reviewed the agenda of the sitting, devoted to discussing the draft of the State’s General Budget for the fiscal year 2021, the report of the Economic Committee and the heads of the standing committees regarding it, in addition to reviewing the tenth five-year development plan (2021-2025) and the report of the Expanded Economic Committee on it.
Subsequently, the Head of the Economic Committee of the Council delivered the statement of the Expanded Economic Committee on the Draft General Budget and noted that the tenth five-year development plan (2021-2025) and the Draft General Budget for the fiscal year 2021 coincide with an important development path in the Sultanate.
The committee noted that it's an exceptional circumstances caused by the decline in oil prices and the continuation of the COVID-19 pandemic, and it has implications on national economic activity, public finances estimates, economic growth expectations, employment levels, in addition to the social impacts on all society segments.
The Committee Head stressed the importance of strengthening efforts to confront the challenges facing the tenth five-year development plan and limiting its effects on the national economy and on the Omani citizen.
He further added that the Expanded Economic Committee discussed the tenth five-year development plan 2021-2025, along with the Draft of the State’s General Budget for the fiscal year 2021 and the fiscal balance programme 2021-2024 as integrated elements with mutual effects, mentioning that the "financial balance" programme is considered as a medium plan.
The term (2021-2024) represents the path on which the Draft General Budget for the fiscal year 2021 was based, with the aim of giving the budget a strategic dimension and greater flexibility in adapting to changes in the revenue and expenditure sides.
The committee head explained that the tenth five-year development plan aims to achieve five goals represented in promoting human development, preserving human capital, stimulating economic activity in partnership with the private sector, supporting the role of small and medium enterprises, expanding the base of economic diversification, developing mechanisms and programs for productive structures, developing the macroeconomic environment and achieving financial sustainability, in addition to achieving balanced development for the governorates.
Additionally he indicated that the Expanded Economic Committee concluded with several recommendations and visions on the draft Budget, including stressing the importance of developing policies to expand the production base, and activating initiatives and activities that would increase dependence on non-oil sectors, and untapped resources and benefit from the comparative advantages, expand revenue streams and provide the opportunity for more investments and benefit from the capabilities and high-cost infrastructure provided by the Omani economy.
At the conclusion of the discussions, the Chairman of the Council expressed his appreciation for the efforts made by the Ministry of Finance and Economy in completing the Draft General Budget, the tenth five-year plan and its executive programme (2021-2025) within limited time, in light of the changes in the structure of the State’s Administrative apparatus, which led to the establishment of the Ministry of Economy and defined its terms of reference, and this coincided with the need to prepare the plan and announce it on. As well, he thanked the honorable members of the Expanded Economic Committee for their efforts exerted to study the draft Budget.
He expressed his hope that the views of the members would contribute to enriching the project and combine with the government's efforts to achieve financial sustainability, and strengthening of the Omani economy and enable it to face challenges.
This came at the second ordinary sitting of the second annual session of the seventh term of the State Council, chaired by Sheikh Abdul Malik bin Abdullah Al Khalili, Council Chairman in the presence of the members and the Secretary-General of the Council.
