25 May 2015
Muscat: Oman's government revenues fell in the first quarter of 2015 by 23.9 per cent to OMR2,447.3 million from OMR3,214.4 million for the same period last year, predominantly due to the decline in oil revenues.
Net oil revenues plummeted by 35.31 per cent (or OMR913.5 million) to OMR1,673.4 million, from as high as OMR2,586.9 million during the three-month period under review, according to the latest statistics released by the Central Bank of Oman.
The average price of Oman Crude in the international market dipped by 41.5 per cent to $61.99 per barrel in the first three months of this year, from as high as $105.96 per barrel for the same period of 2014, according to the latest statistical bulletin released by the National Centre for Statistics and Information (NCSI).
However, the Sultanate's government did not reduce its expenditures, which were OMR2,991.9 million in the first quarter of 2015, against OMR2,999 million in the same period in 2014.
Both current and investment expenditures edged up to OMR1,697.6 million (from OMR1,693.3 million) and OMR555.3 million (from OMR548 million), respectively.
The Oman government projected its budget expenditure and revenues for 2015 at OMR14.1 billion and OMR11.6 billion, respectively, leaving an anticipated deficit of OMR2.5 billion.
In the first quarter of 2015, the country posted a budget deficit of OMR544.6 million, against a surplus of OMR215.4 million posted in the same period of 2014.
Market analysts said that maintaining investment expenditures, despite a huge fall in oil revenues, is a healthy sign and would prop up economic activity.
The government has been introducing major initiatives to raise debt funds from domestic markets by way of a OMR200 million-worth sukuk, or Islamic bond issue. The private placement of sukuk, which is expected within a number of months, will enable the government to continue its spending.
Move is also afoot to raise funds by divesting stakes in state-owned companies. Although 11 companies were identified for divestment almost two years ago, the progress in floating initial public offerings has been slow.
Muscat: Oman's government revenues fell in the first quarter of 2015 by 23.9 per cent to OMR2,447.3 million from OMR3,214.4 million for the same period last year, predominantly due to the decline in oil revenues.
Net oil revenues plummeted by 35.31 per cent (or OMR913.5 million) to OMR1,673.4 million, from as high as OMR2,586.9 million during the three-month period under review, according to the latest statistics released by the Central Bank of Oman.
The average price of Oman Crude in the international market dipped by 41.5 per cent to $61.99 per barrel in the first three months of this year, from as high as $105.96 per barrel for the same period of 2014, according to the latest statistical bulletin released by the National Centre for Statistics and Information (NCSI).
However, the Sultanate's government did not reduce its expenditures, which were OMR2,991.9 million in the first quarter of 2015, against OMR2,999 million in the same period in 2014.
Both current and investment expenditures edged up to OMR1,697.6 million (from OMR1,693.3 million) and OMR555.3 million (from OMR548 million), respectively.
The Oman government projected its budget expenditure and revenues for 2015 at OMR14.1 billion and OMR11.6 billion, respectively, leaving an anticipated deficit of OMR2.5 billion.
In the first quarter of 2015, the country posted a budget deficit of OMR544.6 million, against a surplus of OMR215.4 million posted in the same period of 2014.
Market analysts said that maintaining investment expenditures, despite a huge fall in oil revenues, is a healthy sign and would prop up economic activity.
The government has been introducing major initiatives to raise debt funds from domestic markets by way of a OMR200 million-worth sukuk, or Islamic bond issue. The private placement of sukuk, which is expected within a number of months, will enable the government to continue its spending.
Move is also afoot to raise funds by divesting stakes in state-owned companies. Although 11 companies were identified for divestment almost two years ago, the progress in floating initial public offerings has been slow.
© Times of Oman 2015
