Please read the paragraph given above and answer the following questions. Each question carries five marks.

1. Analyze the type of budgeting discussed in the paragraph. Justify your answer with points from the paragraph
2. Analyze the impact of government spending on the Aggregate Demand.

Please Read the following Paragraph and Answer the following Questions Ojam 9 ROVETHIDED will finance most of its budget sinartfall in 2021 by bolowing to plug a fiscal gup battered by a decline in od prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will ever 73%, ar 16 hillion rials ($42 billion) ? of the country: 2.2 billion-tial shortfil, with the remaining 600 million sals to be chan Gomis reserves, according to a post on Twitter by the state ran Oman News Agency on Friday. The goverment based its 2021 budget plan can oil price of $45 per barrel Other highlights from Oman's 2021 budget- Expenditure ja sotto fail to 10 billion, a 14% trop from the previous year 2021 nove is set to full to 8.6 triticals, a 19% dachme, Budget deficit at 8% of gross domestic product in 2021.2.2 billion rials. Oman has taken measures such as reduced spending and plans to impose a 5% value-added tax in 2021. It will implement developmental projects valued at 371 millica rials as part of the effort to redirect 180ces toward "natsional police, according to the Oman News Agency The Sultanate's economy is estimated to have shrank 10% in 2020, according to projections from the International Monetary Fund, among the steepest in the Gulf. Bond specads in the nation have increased in 2020 compared to neighbors and while financial buffers remain sample in Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, they are significantly weaker in Bahrain and Oman," according loput by the end Source: http://www.bloomberg.comews/articles/2021-01-01/man-plans-2021-borrowing-a-lon- cil-price-vino-hattes-economy