Oman records budget surplus of $966.2mln, repays $2.8bln debt

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Muscat: Oman’s budget recorded a surplus of OMR372 million at the end of 2023 compared to a surplus of OMR210 million registered over the same period in 2022, according to the Fiscal Performance Monthly Bulletin published by the Ministry of Finance.

The Bulletin further stated that during the first quarter of 2023, the government repaid OMR1.1 billion against public debt, reducing the total government debt to OMR16.6 billion at the end of March 2023.

Also, the state’s public revenue at the end of February 2023 amounted to OMR2.14 billion, higher by 12 percent when compared to OMR1.91 billion registered over the same period in 2022, according to the monthly Bulletin published by the Ministry of Finance.

This is mainly attributed to an increase in oil and gas revenues, representing 78 percent of total public revenue, and an increase of current revenue by 51 percent.

Net oil revenue at the end of February 2023 amounted to OMR1.15 billion, up by 5 percent compared to OMR1.09 billion achieved over the same period in 2022. This is driven by higher oil prices of $86 per barrel, as well as an increase in oil production to 1,064,000 barrels per day. Furthermore, gas revenue increased to OMR521 million, up by 2 percent when compared to the same period in 2022. Current revenue at the end of February 2023 increased by OMR160 million, amounting to OMR471 million compared to OMR311 million registered over the same period in 2022.

Public spending at the end of February 2023, amounted to OMR1.77 billion, up by OMR68 million, i.e. 4 percent when compared to the same period in 2022. This is mainly due to an increase in current expenditure and contributions and other expenses by OMR108 million, while gas purchase and transport expenditure declined by OMR132 million as a result of transferring such expenditure to the Integrated Gas Company.

Development expenditure of ministries and government units amounted to OMR50 million, representing 6 percent of total development spending, i.e. OMR900 million, allocated for 2023.

Current expenditure of civil ministries at the end of February 2023 amounted to OMR643 million, up by OMR32 million, compared to OMR611 million registered over the same period in 2022. Total contributions and other expenses at the end of February 2023 amounted to OMR133 million, up by 133 percent, compared to OMR57 million registered over the same period in 2022. Oil products subsidy and water sector subsidy amounted to OMR47 million and OMR17 million, respectively, by the end of February 2023. Additionally, an amount of OMR66 million was transferred to future debt obligations budget-item.

The most significant results of the Medium Term Fiscal Plan 2021-2024 include reducing the fiscal breakeven oil price to $68 per barrel, increasing non-hydrocarbon revenue, reducing public debt, improving Oman’s credit ratings, developing social protection system and restructuring pension funds, as well as other direct and indirect results.