2024 budget aims to improve the business environment: Oman’s Minister of Finance

Muscat: The 2024 budget aims to improve the business environment, expand the private sector’s participation in economic development, and support the social aspect by empowering the Social Protection Fund and maintaining the level of spending in basic services such as education, health, and housing, said the Minister of Finance.

Minister of Finance clarifies during a press conference held by the Ministry of Finance regarding the state’s general budget for the year 2024 that estimating public revenues comes within the framework of the precautionary approach to reduce the burden of any financial challenges that may arise during the fiscal year 2024 and ensure that financing needs are met in the event of a decline in oil prices.

Minister of Finance: The total financing needs for the fiscal year 2024 amount to RO 2.2) billion, including the deficit in addition to loan installments expected to be repaid during this year.

Minister of Finance clarifies that the implementation of a number of postponed development projects has been reflected in the projects of the Tenth Five-Year Plan, whose commitments have increased from RO 5 billion at its beginning to more than RO 8 billion by the end of 2023.

Minister of Finance: Launching a housing program to accelerate access to housing loans with a lending portfolio amounting to 1.9 billion Omani riyals.

The Undersecretary of the Ministry of Finance reviews the preliminary results of the financial performance for the year 2023, which indicate achieving a financial surplus of about RO 931 million compared to the estimated deficit in the state’s general budget of about RO 1.300 billion.

Minister of Finance: The state’s public revenues in 2023 rose to RO 12.213 billion, an increase of about RO 2.163  billion compared to what was approved in the budget for the same year, while public spending recorded RO 11.282 billion.

Minister of Finance: Net oil revenues in 2023 will rise by (29) percent to record about RO 6.883 billion, and net gas revenues will increase by (43) percent to reach about RO 2 billion as a result of the rise in gas production and prices.

Minister of Finance confirms that the preliminary results of the financial performance for the year 2023 indicate that the government was able to reduce the public debt from RO 17.6 billion to RO 15.2 billion by paying about RO 2.4 billion, which led to saving RO 140 million from the cost of servicing the public debt.

Minister of Finance: The net oil revenues in the 2024 budget are estimated at approximately RO 5.915 billion, the collection of net gas revenues is approximately RO 1.575 billion and the collection of non-oil revenues is approximately RO 520 million.

Minister of Finance: Estimates of contributions and other expenditures in the 2024 budget include RO 2.177 billion, including RO 560 million for social protection programs, RO 460 million to support the electricity sector, RO 184 million to support the water and sanitation sector, RO 35 million to support petroleum products, and RO 25 million to support food commodities and RO 55 million to support interest on development and housing loans.

Minister of Finance: The state’s general budget for the fiscal year 2024 approved RO 4.6 billion for the social and basic sectors, which constitute (40) percent of the total public spending, including RO 1.974 billion for the education sector.

Minister of Finance points out that the 2024 budget allocated about RO 1.140 billion for the development budget and projects with a developmental impact.

Minister of Finance: The volume of development and investment spending expected during the state’s general budget for the year 2024 and other government institutions, namely the Oman Investment Authority (OIA) and its subsidiaries and the Oman Energy Development Company (OEDC) is estimated at approximately RO 3.9 billion.

Minister of Finance: The allocation to the governorates in the 2024 budget amounts to about RO 83.7 million, of which RO 44 million are for the governorate development program.

Minister of Finance: The national benefits from reducing the total public debt contribute to achieving annual savings from future public debt service amounting to RO 350 million , and reducing the total public debt until the end of 2023 by about RO 5.5 billion.

Minister of Finance: A study of 1,539 service fees for 6 government agencies within the third stage of implementing the government services pricing guide, which takes into account the financial, economic and social impacts.

Minister of Finance: Adopting the financial sector development plan presented by the National Program for Financial Sustainability and Financial Sector Development in cooperation with the relevant authorities, and the details of the plan will be announced in February.

The Minister of Finance indicates that the total foreign investments in Oman reached RO 23 billion in 2023.

Minister of Finance confirms that the government will continue to subsidize fuel prices, as has been the practice since October 2021.

Minister of Finance: RO 60 million have been allocated for the promotions of the employees of 2013 and 2014, with more than 52,000 employees starting tomorrow, employees will be promoted from 2013 seniority, while employees from 2014 seniority will be promoted starting next July.

Minister of Finance: It is expected that during the year 2024, about RO 1.6 billion will be repaid from the public debt of the Sultanate of Oman.

Minister of Finance clarifies that employment in the government is based on the natural growth of projects and replacement, noting that  RO 36 million have been allocated in the 2024 budget for training programs for employment.