Oman state budget records RO 357 million surplus in Q1

Muscat (ONA) : The State Budget continues to registers a surplus as it reached RO 357 mn at the end of Q1 of 2022. The surplus will be utilized for accelerating economic recovery, enhancing development spending and reducing the risks of the public debt portfolio.

As of end-first quarter 2022, public revenues amounted to RO 3,025 million, up by 66.3% when compared to the same quarter in 2021, according to the monthly bulletin of the Ministry of Finance.

This is mainly as a result of an increase in the net oil revenue by 70.2% at the end of Q1-2022 to reach RO 1,565 million compared to the same period In 2021. This is due to an increase in average oil price to 78 US dollars per barrel. And higher average oil production to 1,025 thousand barrels per day, compared to average oil price of 45 US dollars per barrel and average oil production of 952 thousand barrels per day over the same period in 2021. 

At the end of Q1-2022, gas revenue increased to RO 454 million, up by 124.4% as compared to the same period in 2021. This is as a result of higher gas prices and an increased in average gas production. 

At the end of Q1-2022, current revenue increased by 23.7% as compared to the same period in 2021. Such increase in supported by VAT receipts of RO 69 million, excise tax of RO 24 million, and improved collection of government revenue.

By the end of the first quarter of 2022, public spending amounted to RO 2,668 million, up by 3.8% when compared to the same period in 2021.

At the end of Q1-2022, the current expenditure of civil ministers and units registered almost similar figures of the same period in 2021. Moreover, the public debt service registered an increase to RO 291 million.

At the end of Q1-2022, the development expenditure of civil ministers and units increased by 130.8% to RO 150 million compared to the same quarter in 2021. The total amount spent represents 13.6% of the total development budget allocated for 2022 I.e. RO 1,100 million.

At the end of Q1-2022, the contributions and other expenses amounted to RO 179 million, including RO 50 million allocated for public debt service.

Following the decision (issued in November 2021) to stabilize vehicle fuel prices as per the rates of October 2021 as a maximum, oil products subsidy amounted to RO 67 million. The Government shall cover the difference resulting from any excess in oil prices up to the end of 2022.

At the end of Q1-2022, the budget continues to register a surplus, totaling RO 357 million as compared to a deficit of RO 751 million over the same period in 2021.

By the end of the first quarter of 2022, the Ministry of Finance paid the private sector an amount of RO 146.4 million. This reflects the payment vouchers received through the e-financial system, and which have completed the documentary cycle.

According to MENA Economic Update released by the World Bank, Oman’s economy is projected to recover as measures against the Covid-19 pandemic continue to be lifted, and also due to increasing oil prices and production. The gross domestic production (GDP) is projected to grow to 5.6% supported by the growth of more than 8% and 2% in oil and non-oil sectors, respectively, in 2022. However, the GDP growth is projected to decreased to 2.75 on average In 2023 and 2024.