Please Read the Following Paragraph and Answer the Following Questions Oman's government will nance most of its budget shortfall in 2021 by borrowing to plug a scal gap battered by a decline in oil prices and the coronavirus pandemic. The Persian Gulf state is looking into borrowing that will cover 23%, or 1-6 billion rials {$4.2 billion}, of the country's 2-2 billionrial shortfall, with the remaining 600 million rials to be drawn from its reserves, according to a post on Twitter by the staterun Oman News Agency on Friday. The government based its 2021 budget plan on an oil price of $45 per barrel. Other highlights om Oman's 2021 budget: I Expenditure is set to fall to 10.3 billion rials, a 14% drop 'om the previous year. I 2021 revenue is set to fall to 3-5 billion rials, a 19% decline. I Budget decit at 3% of gross domestic product in 2021, 2.2 billion rials. Oman has taken measures such as reduced spending and plans to impose a 5% valueadded tax in 2021- It will implement developmental projects valued at 321 million rials as part of the effort to redirect resources toward "national priorities," according to the Oman News Agency. The sultanate's economy is estimated to have shrunk 10% in 2020, according to projections from the International Monetary Fund, among the steepest in the Gulf. Bond spreads in the nation have increased in 2020 compared to neighbors and \"while nancial buffers remain ample in Kuwait, Qatar, Sandi Arabia and the United Arab Emirates, the}.r are signicantly weaker in Bahrain and Oman," according toareportbythefund Source: https:r'r'wwwhloomberg-comfnewsfarticlesf20210101fomanp1ans2021borrowingas1ow oilpricevinisbattereconomy Answer the Question; 1. Analyze the type of budgeting discussed in the paragraph. Justify your answer with points 'om the Paragraph 2. Analyze the impact of government spending on the Aggregate Demand