Oman’s public revenue surges by 25% to reach RO 12.542 billion
Published: 05:06 PM,Jun 02,2024 | EDITED : 09:06 PM,Jun 02,2024
MUSCAT: Data from the bulletin on the actual performance of the state’s general budget issued by the Ministry of Finance indicated that actual public revenues increased by 25 per cent by the end of 2023, reaching RO 12.542 billion, compared to the approved budget estimates of RO 10.050 billion.
This is due to the increase in oil and non-oil revenues.
The data showed that oil revenues increased by 34 per cent compared to the approved budget, constituting 72 per cent of total public revenues by the end of 2023.
Net oil revenues amounted to RO 7.150 billion, an increase of 34 per cent over the net oil revenues estimated in the 2023 budget of RO 5.320 billion. This is due to the rise in average oil prices in global markets, where the average achieved oil price reached about $82 per barrel, compared to the approved price per barrel in the 2023 budget of $55 per barrel.
Net gas revenues by the end of 2023 amounted to RO 1.868 billion, recording an increase of 33 per cent compared to the approved budget estimates of RO 1.400 billion.
The total non-oil revenues by the end of 2023 amounted to RO 3.524 billion, an increase of RO 194 million, or 6 per cent compared to the approved budget, as it represents 28 per cent of the total public revenues by the end of 2023. This is due to higher corporate income tax and value-added tax revenues.
The total current revenues at the end of last year amounted to RO 3.500 billion, an increase of 7 per cent over the total current revenues in the 2023 budget, which amounted to RO 3.280 billion.
The total tax and fee revenues by the end of 2023 recorded an increase of 10 per cent to reach RO 2.054 billion, compared to the tax and fee revenues approved in the 2023 budget of RO 1.869 billion. This is due to an increase in corporate income tax revenues by 36 per cent and value-added tax revenues by 12 per cent, as a result of the recovery in economic activity.
non-tax revenues
Total non-tax revenues increased by the end of 2023 by 3 per cent to reach RO 1.446 billion, compared to the approved budget of RO 1.401 billion.
This is a result of the increase in dividends from government investments, airport and port revenues, and miscellaneous revenues.
The volume of actual public spending by the end of 2023 witnessed a slight increase of 2 per cent, recording RO 11.606 billion compared to the approved spending volume of RO 11.350 billion.
This is a result of increased social spending and support for stimulating economic activity, to include increased expenses for subsidising petroleum products and increased spending on development projects.
Current expenses decreased by the end of 2023 by 1 per cent, recording RO 8.554 billion, compared to what was approved in the 2023 budget of RO 8.620 billion.
The actual expenditure of the defence and security units amounted to RO 2.894 billion, a decrease of RO 106 million compared to what was approved in the 2023 budget.
The actual expenditures of the civil ministries increased by the end of 2023 by 4 per cent, recording RO 4.616 billion, compared to what was approved in the 2023 budget amounting to RO 4.420 billion. This increase is due to increased spending in some sectors.
Total expenditures for development projects of ministries and civil government units increased by 24 per cent, recording RO 1.363 billion compared to what was approved in the 2023 budget.
This is due to the increase in financial liquidity allocated to the development budgets of government units and governorates for the year 2023, in addition to the payment of dues to private sector companies implementing development projects.
Spending on the infrastructure sector represented about 41 per cent of the total actual development spending for the year 2023, and spending on the social structures sector represented 37 per cent of the total actual development spending for the year 2023.
The total contributions and other expenditures amounted to RO 1.689 billion, an increase of 4 per cent compared to the approved budget of RO 1.630 billion. This is due to the increase in expenses for subsidising petroleum products, which amounted to RO 370 million compared to the budget approved amount of RO 39 million. This comes in implementation of the royal orders to fix fuel selling prices.
During the year 2023, the Ministry of Finance paid more than RO 1.4 billion in dues paid to the private sector received through the financial system, completing the documentary cycle.
The government directed additional financial revenues amounting to RO 936 million during the past year towards enhancing social spending, stimulating economic growth, reducing public debt, and managing financial obligations, which contributed to improving financial and economic indicators, the credit rating, and the financial position of the Sultanate of Oman. The total public debt until the end of 2023 amounted to RO 15.3 billion, a decrease of RO 2.3 billion compared to 2022, as a result of the Ministry of Finance managing government obligations and repaying part of the loans. — ONA
This is due to the increase in oil and non-oil revenues.
The data showed that oil revenues increased by 34 per cent compared to the approved budget, constituting 72 per cent of total public revenues by the end of 2023.
Net oil revenues amounted to RO 7.150 billion, an increase of 34 per cent over the net oil revenues estimated in the 2023 budget of RO 5.320 billion. This is due to the rise in average oil prices in global markets, where the average achieved oil price reached about $82 per barrel, compared to the approved price per barrel in the 2023 budget of $55 per barrel.
Net gas revenues by the end of 2023 amounted to RO 1.868 billion, recording an increase of 33 per cent compared to the approved budget estimates of RO 1.400 billion.
The total non-oil revenues by the end of 2023 amounted to RO 3.524 billion, an increase of RO 194 million, or 6 per cent compared to the approved budget, as it represents 28 per cent of the total public revenues by the end of 2023. This is due to higher corporate income tax and value-added tax revenues.
The total current revenues at the end of last year amounted to RO 3.500 billion, an increase of 7 per cent over the total current revenues in the 2023 budget, which amounted to RO 3.280 billion.
The total tax and fee revenues by the end of 2023 recorded an increase of 10 per cent to reach RO 2.054 billion, compared to the tax and fee revenues approved in the 2023 budget of RO 1.869 billion. This is due to an increase in corporate income tax revenues by 36 per cent and value-added tax revenues by 12 per cent, as a result of the recovery in economic activity.
non-tax revenues
Total non-tax revenues increased by the end of 2023 by 3 per cent to reach RO 1.446 billion, compared to the approved budget of RO 1.401 billion.
This is a result of the increase in dividends from government investments, airport and port revenues, and miscellaneous revenues.
The volume of actual public spending by the end of 2023 witnessed a slight increase of 2 per cent, recording RO 11.606 billion compared to the approved spending volume of RO 11.350 billion.
This is a result of increased social spending and support for stimulating economic activity, to include increased expenses for subsidising petroleum products and increased spending on development projects.
Current expenses decreased by the end of 2023 by 1 per cent, recording RO 8.554 billion, compared to what was approved in the 2023 budget of RO 8.620 billion.
The actual expenditure of the defence and security units amounted to RO 2.894 billion, a decrease of RO 106 million compared to what was approved in the 2023 budget.
The actual expenditures of the civil ministries increased by the end of 2023 by 4 per cent, recording RO 4.616 billion, compared to what was approved in the 2023 budget amounting to RO 4.420 billion. This increase is due to increased spending in some sectors.
Total expenditures for development projects of ministries and civil government units increased by 24 per cent, recording RO 1.363 billion compared to what was approved in the 2023 budget.
This is due to the increase in financial liquidity allocated to the development budgets of government units and governorates for the year 2023, in addition to the payment of dues to private sector companies implementing development projects.
Spending on the infrastructure sector represented about 41 per cent of the total actual development spending for the year 2023, and spending on the social structures sector represented 37 per cent of the total actual development spending for the year 2023.
The total contributions and other expenditures amounted to RO 1.689 billion, an increase of 4 per cent compared to the approved budget of RO 1.630 billion. This is due to the increase in expenses for subsidising petroleum products, which amounted to RO 370 million compared to the budget approved amount of RO 39 million. This comes in implementation of the royal orders to fix fuel selling prices.
During the year 2023, the Ministry of Finance paid more than RO 1.4 billion in dues paid to the private sector received through the financial system, completing the documentary cycle.
The government directed additional financial revenues amounting to RO 936 million during the past year towards enhancing social spending, stimulating economic growth, reducing public debt, and managing financial obligations, which contributed to improving financial and economic indicators, the credit rating, and the financial position of the Sultanate of Oman. The total public debt until the end of 2023 amounted to RO 15.3 billion, a decrease of RO 2.3 billion compared to 2022, as a result of the Ministry of Finance managing government obligations and repaying part of the loans. — ONA