Oman: State’s Actual General Revenue Increase 25pc in 2023

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Muscat: The State’s actual general revenue in 2023 increased by 25% and reached RO 12.542 billion compared to the budgeted amount of RO 10.05 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% compared to the approved budget and constituted 72% of total public revenue by the end of 2023. Net oil revenue amounted to RO 7.150 billion, up by 34% compared to the budget estimate of 2023 which was RO 5.320 billion.

The rise is attributed to the increase of average oil prices in international markets, reaching USD 82 per barrel compared to the approved barrel price in budget 2023 which stood at USD 55 per barrel. Net gas revenue at the end of 2023 amounted to RO 1.868 billion, comprising a rise by 33% compared to the budget estimate of RO 1.4 billion.

Total non-oil revenue by the end of 2023 reached RO 3.524 billion, up by RO 194 million (6%) compared to the approved budget.

Non-oil revenue constituted 28% 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 RO 3.5 billion, comprising a rise by 7% of total current revenue in Budget 2023 (which was RO 3.280 billion). Total revenue from taxes and fees by the end of 2023 increased by 10% and reached RO 2.054 billion compared to the budget estimate of RO 1.869 billion.

This is mainly due to the increase of revenues from income-tax on companies (by 36%), VAT (by 12%) and the recovery of economic activity.

Non-tax revenue in 2023 went up by 3% to reach RO 1.446 billion compared to the budget estimate of RO 1.401 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% to stand at RO 11.606 billion compared to the budget estimate of RO 11.350 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% to reach to RO 8.554 billion compared to the budgeted amount of RO 8.620 billion.

Actual defence and security expenditure reached RO 2.894 billion, comprising a fall by RO 106 million compared to the budgeted amount.

Actual spending of civil ministries in 2023 went up by 4% to reach RO 4.616 billion compared to the budgeted amount of RO 4.420 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% to reach RO 1.363 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 RO 1.689 billion, constituting a rise by 4% compared to the budgeted amount of RO 1.630 billion, due to expenditure in hydrocarbon products subsidy with a total amount of RO 370 million compared to the budgeted amount of RO 39 million. This comes in implementation of Royal orders to fix the selling prices of fuel.

The Ministry of Finance paid RO 1.4 billion in 2023 to the private sector through the e-financial system.

The government utilized additional revenue of RO 936 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 RO 15.3 billion, going down by RO 2.3 billion compared to 2022.   – ONA

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