The review welcomed the fact that fiscal outturn in 2010 has been better than originally projected. Non-oil receipts (including grants) for the year are now estimated to be 6.4% higher than previously expected by the Fund, at UM246bn (US$890m), owing to some unbudgeted windfall bonuses and royalties from the iron and gold mining sectors. The authorities have stated their intention to save the extra revenue to meet future financing needs.

Capital spending in 2010 is estimated at UM93bn, 3.7% down on original projections, owing to difficulties in executing investment projects. Notably, only foreign-financed capital spending, totalling UM39bn, came in below expectations; domestically funded capital projects are still estimated to total UM53bn. By contrast, current expenditure of UM189bn was up by 2.7% on previous estimates. This rise was entirely accounted for by spending on the public-sector wage bill exceeding initial expectations by 10.3%, to total UM84.5bn.

The basic non-oil deficit in 2010 has been revised down by 12.6%, from UM32.6bn to UM28.5bn. As a percentage of GDP, the Fund now estimates the basic non-oil deficit at 3%, compared with 3.8% previously. The overall balance-including net oil revenue of UM11.4bn and grants of UM22.4bn-is now estimated at UM38.5bn, down by 11.1% on the IMF's previously projected UM43.3bn. The overall deficit is now estimated at equivalent to 4% of GDP in 2010, down from 5% previously.

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