IMF urges spending cuts

The International Monetary Fund (IMF) has told Oman it needs to spend less and diversify more, in a report following annual consultations. The recently published Article IV consultation said that fiscal sustainability was becoming a significant challenge and that, in the medium term, fiscal balances needed an adjustment of around 10% of GDP (23% of non-oil GDP). “The mission recommends an initial adjustment of 1% of GDP in 2013 by rationalising the planned increase in workforce, and restraining goods and services spending,” the IMF said.