The Budget Deficit in Oman - Research Paper Example

Oman is presently facing a budget deficit, which last occurred during the previous regime as a result of poor governance. The country’s budget deficit is approximated to be OMR 1.8 billion which is quite high given that, the state had a budget surplus of approximately three hundred and fifty million OMRs.

            A study was conducted to establish the various factors, which might have resulted in such a huge deficit in a country that experience an average growth of ten percent annually. The aim of the study is established in the introduction part alongside the objectives and the research questions. The introduction further expresses the rationale of conducting the research.

            A literature review of several existing literature on the Oman government spending and revenue is effectively done on the literature review. The paper further details the different alternatives for oil as the country’s source of revenue such as tourism, industrialization, and taxation. The different methods used for data collection are analyzed on the methodology that is followed by a complete evaluation of the research findings.

The goal is to establish the factors that make the budget deficit in Oman and formulation of ways of reducing the budget deficit in the country. The research establishes ways of reducing the impact of the factors contributing to large government expenditure which results in large government expenditure. In order to accomplish the research objective, there are various research methodologies used for data collection and analysis.

            Oman government expenditure in 2014 is projected to be approximate OMAR 13.5 billion and the state is expected to generate approximate revenue of OMAR 11.7 billion. Anticipated Oman’s budget deficit is, therefore, OMAR 1.8 billion. There is the largest budget deficit experienced in the country since the economic crisis resulting from political instability experienced in the 1970s. Omar has been enjoying a budget surplus for the last two decades owing to the stability of the oil prices in the world and the country’s political stability.