Oman: Oman’s fiscal performance is displaying positive signs as revenue for the end of April 2023 reached OMR 4.39b. This marked a 4% increase compared to the same period in 2022 when it stood at OMR 4.22b.
The Ministry of Finance’s Fiscal Performance Bulletin highlights that this growth is primarily attributed to the rise in net oil revenue and current revenue. They accounted for 53% and 27% of the total public revenue, respectively.
Revenue Recorded in April
Net oil revenue amounted to OMR 2.31b, reflecting a 12% increase compared to the OMR 2.06b recorded during the same period in 2022. The surge in revenue is a result of the average oil price per barrel rising to $84 and an increase in average oil production which reached 1,064,000 barrels per day.
However, net gas revenue was OMR 908m showing a decline of 15% compared to 2022’s OMR 1.071b. This decrease is attributed to the deduction of gas purchase and transport expenses from the total revenue collected by the Integrated Gas Company.
Moreover, current revenue reached OMR 1.172b, exhibiting an 8% increase compared to the OMR 1.08b collected during the same period in 2022.
Public spending in Oman totaled OMR 3.872b, marking a 3% increase of OMR 123m in comparison to the corresponding period in 2022. This rise can be attributed to an increase in the current expenditure of civil ministries in Oman.
Furthermore, current expenditure totaled OMR 2.674b, which is a 9% decrease of OMR 269m compared to the OMR 2.943bn recorded during the same period in 2022.
In terms of development expenditure by civil ministries, it reached OMR 183m, accounting for 20% of the total development spending of OMR 900m allocated for 2023.
Contributions and other expenses by the end of April 2023 amounted to OMR 365m, representing a 10% decrease compared to the OMR 405m registered during the same period in 2022. Additionally, OMR 111m was allocated to oil product subsidies, while OMR 133m was transferred to the future debt obligations budget item.
Surpassing the surplus of OMR 468m achieved during the same period in 2022, Oman’s general budget achieved a surplus of OMR 520m.
Usage of Surplus
The Ministry of Finance emphasized that the government will utilize the surplus to manage liabilities and reduce public debt, enhance social spending, and stimulate economic recovery. Consequently, these measures aim to ensure a sustainable and prosperous future for Oman’s economy.