MUSCAT Oman has pumped 580 million dollars into development projects over the last 17 months on the back of the boom in oil prices, the Sultanate's Economy Minister Ahmad bin Abdul Nabi Mekki said Wednesday.

"It was possible to implement in 2000 some of the projects planned for the years 1998 and 1999 which were postponed because of the drop in oil prices," said Mekki, whose country is an independent crude producer of around 900,000 barrels per day.

"Out of this additional amount, 374 million dollars was allocated for 2000 and another 206 million dollars for the period between January and May 2001," he told reporters, adding the funds were used for road, power, housing, health and education projects.

"This is in addition to the projects already approved in the development budget for the year 2000", the minister stressed.

Oman has thus readjusted its forecast budget deficit in 2001 to 818 million dollars from revenues of 6.437 billion dollars and expenditure of 7.255 billion dollars, representing five percent of the gross domestic product (GDP), according to AFP.

The 2001 budget, launching a new five-year development plan, was based on a conservative price of 18 dollars a barrel. The actual average price of crude oil in the first five months of 2001 was hovering around 24 dollars.