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Oman published its annual budget on January 1st. The minister for national economy, Ahmed bin Abdulnabi Macki, said that government spending would increase by 12% compared with 2009 to 7.18 billion rials ($18.7bn) in 2010, compared with projected revenues of 6.424 billion rials, based on an oil price of $50 a barrel. Oil and gas revenues would account for 76% of government income.

The deficit will be covered by withdrawals from the State General Reserve Fund.

Government figures showed that Oman sold its oil at an average price of $51.85 a barrel in January to September last year, whereas its 2009 budget was based on a figure of $45 a barrel of oil.

Since Oman is not a member of OPEC, the country was not compelled to abide by production quotas and increased daily production of oil to 806,000 barrels in the first nine months of 2009, a rise of 7.5% compared to the same period in the previous year.

937 million rials have been allocated for expenditure on projects that will create 4,000 jobs for nationals in the labour market, including water desalination plants, schools, roads and hospitals . At which one's eyes widen. Did the minister mean that Omani nationals would actually be building these projects rather than the Asian labourers who are normally imported to carry out menial work?

"Oman's total debt as of the end of 2009 stood at 722 million Omani riyals ($1.88 billion), with domestic debt accounting for 252 million riyals of the total figure."

Major infrastructure projects will continue. Duqm Port is expected to be ready by 2012.

Macki reiterated yet again that Oman would not be joining the Gulf currency union. Neither had it any intention of changing its currency peg from the US dollar. The Sultanate left the union in 2006.