#Oman switches to fiscal surplus after spending cuts - Reuters

Oman switches to fiscal surplus after spending cuts - Reuters:

Oman switched to a fiscal surplus in the first four months of the year after it cut public spending amid low oil prices and the coronavirus crisis, official figures showed.

While other Gulf states resorted to debt to fill state coffers, Oman - which has over $20 billion in outstanding bonds rated junk by major rating agencies - has avoided international markets after a spike in borrowing costs in recent months.

But severe cuts in public expenditure have led to a surplus of 134.2 million rials ($349.48 million) in January-April from a deficit of 133.2 million rials a year earlier, the figures released by the national statistics agency showed.

“Fiscal consolidation through expenditure rationalisation and sharper non-oil revenue generation is showing up in the statistics,” said Ehsan Khoman, head of MENA research and strategy at MUFG.