Muscat: The State’s actual general revenue in 2023 increased by 25 percent and reached OMR12.542 billion compared to the budgeted amount of OMR10.05 billion, according to the Final Account 2023 bulletin issued by the Ministry of Finance.

This rise is attributed to the increase in hydrocarbon and non-hydrocarbon revenues.

Oil revenue went up by 34 percent compared to the approved budget and constituted 72 percent of total public revenue by the end of 2023. Net oil revenue amounted to OMR7.150 billion, up by 34 percent compared to the budget estimate of 2023 which was OMR5.320 billion.

The rise is attributed to the increase of average oil prices in international markets, reaching $82 per barrel compared to the approved barrel price in budget 2023 which stood at $55 per barrel.

Net gas revenue at the end of 2023 amounted to OMR1.868 billion, comprising a rise by 33 percent compared to the budget estimate of OMR1.4 billion.

Total non-oil revenue by the end of 2023 reached OMR3.524 billion, up by OMR194 million (6 percent) compared to the approved budget. Non-oil revenue constituted 28 percent of total public revenue in 2023. This is attributed to the increase in revenue of companies’ income-tax and the Value-Added Tax (VAT).

Current revenue in 2023 reached OMR3.5 billion, comprising a rise by 7 percent of total current revenue in Budget 2023 (which was at OMR3.280 billion).

Total revenue from taxes and fees by the end of 2023 increased by 10 percent and reached OMR2.054 billion compared to the budget estimate of OMR1.869 billion. This is mainly due to the increase of revenues from income-tax on companies (by 36 percent), VAT (by 12 percent) and the recovery of economic activity.

Non-tax revenue in 2023 went up by 3 percent to reach OMR1.446 billion compared to the budget estimate of OMR1.401 billion. This rise is attributed to the boost in dividends of government investment, revenues of airports and ports and miscellaneous revenues. Actual expenditure by the end of 2023 slightly increased by 2 percent to stand at OMR11.606 billion compared to the budget estimate of OMR11.350 billion. This is the result of increasing social spending and supporting the stimulus of economic growth, enhancing subsidies of hydrocarbon products and boosting spending on development projects.

Further, current expenditure declined by 1 percent to reach OMR8.554 billion compared to the budgeted amount of OMR8.620 billion.

Actual defence and security expenditure reached OMR2.894 billion, comprising a fall by OMR106 million compared to the budgeted amount.

Actual spending of civil ministries in 2023 went up by 4 percent to reach OMR4.616 billion compared to the budgeted amount of OMR4.420 billion. This is attributed to the rise in expenditure in some sectors.

Total expenditure of development projects of ministries and civil units went up by 24 percent to reach OMR1.363 billion compared to the budgeted amount, due to the increase in financial liquidity allocated for development budgets of government units and governorates in 2023, as well as payment of dues to private companies that implemented development projects.

Contributions and other expenses reached OMR1.689 billion, constituting a rise by 4 percent compared to the budgeted amount of OMR1.630 billion, due to expenditure in hydrocarbon products subsidy with a total amount of OMR370 million compared to the budgeted amount of OMR39 million. This comes in implementation of Royal orders to fix the selling prices of fuel.

The Ministry of Finance paid OMR1.4 billion in 2023 to the private sector through the e-financial system.

The government utilised additional revenue of OMR936 million achieved during 2023 towards liability management exercise and public debt reduction, enhancing social spending and stimulating economic growth. This contributed to enhancing financial and economic ratings of Oman, as well as its credit ratings and financial position.

Moreover, total public debt by the end of 2023 stood at OMR15.3 billion, going down by OMR2.3 billion compared to 2022.

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