Oman plans to boost its 2013 budget spending by 10 percent compared to this year's plan to fund new infrastructure projects, an official source familiar with the government's financial planning said.
"A 10 percent hike in spending will take care of our growth to fund development projects such as airports, ports, roads, hospitals and in the energy sector," said the source, who declined to be identified.
The 2013 budget plan would be based on an oil price of USD$85 per barrel and assume a deficit of about the same size as the shortfall originally projected for this year, he said.
Oman approved expenditure of 10 billion rials (USD$26 billion) for 2012 with a deficit forecast at 1.2 billion rials, based on an assumed oil price of USD$75 per barrel.
But high oil prices, currently above USD$110 per barrel, are now expected to help Oman run a comfortable surplus this year.
The Gulf Arab country, which faces a pressing challenge to create tens of thousands of jobs every year for its fast-growing population, boosted spending last year following public protests demanding more jobs and an end to corruption.