System reform of public finance for sustainable growth in the Omani economy

System reform of public finance for sustainable growth in the Omani economy

Omani economy, which heavily depends on depletable, mineral resources, is facing the challenge of making itself more diversified and sustainable. To achieve this goal, securing fiscal stability, improving the strategic budget resource allocation, and ensuring efficiency of individual public expenditure projects and programs are of central importance (Chatper 1). This report addresses these three issues. Given the large share of the government expenditure in the national economy and the government’s determination to play the key role use in expanding the country’s productive capacity, the enhancement of public expenditure efficiency is a crucial task. Chapter 2 makes assessment of the current Omani budget system and discusses the Korean experiences in this field with a major focus on the performancebased budget system. While having well-developed administrative control system on budget, current Omani budget system has the problem of divided responsibilities for the current budgeting and the investment budgeting, weak development of ex ante and ex post performance management of expenditure programs. This might be the reason why Oman shows higher cost efficiency and overall cost efficiency but lower institutional efficiency in comparison to neighboring countries.

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