Ministry of Finance stops exceptional allowances of government employees

The Ministry of Finance has issued on Tuesday two circulars, the first regarding the rationalisation of spending for all government companies for the year 2020 and the second on stopping grants for exceptional allowances to state employees.

A statement issued online by Oman News Agency (ONA) said, “The Ministry stated in Financial Circular No. 11/2020 that, with reference to Financial Circular No. 2020/8 issued on the March 26, addressed to government companies regarding the rationalisation of operating and investment expenditures for the year 2020, and to the ongoing coordination between government companies and the Ministry of Finance for clarification on the points contained in the circular.”

The statement pointed out that “the 10% reduction in the financial publication represents the minimum required to amend the operational budgets and the approved financial plans for this year, and that the economic conditions are currently going through an exceptional stage for companies to make their best efforts targeting to achieve a reduction in the actual spending in the most possible rate and not to sufficiency with the rate of 10% mentioned in the circular.”

“The review of operational expenses includes all items of expenses without exception, including the salaries and benefits of employees and the position of vacant grades, and the emphasis on stopping the expenditures related to consulting, engineering or field studies of whatever nature, whether capital or operational,” the statement added.

The Ministry of Finance called on everyone to cooperate and adhere to what was stated in the publication in order to achieve the public interest. The statement also confirmed that, “as Financial Circular No. 8 indicated to stop all external training courses and workshops, stop attend conferences and exhibitions, and reduce the financial item for official tasks by no less than 50%,and the Ministry stresses the importance of providing them with budgets after adjusting them according to the publication.”

This comes within the framework of the Ministry of Finance and includes government measures to deal with the financial and economic conditions affecting the Sultanate due to the sharp drop in oil prices.