Oman’s public revenues exceed RO 8 billion
According to the Ministry of Finance’s monthly bulletin, net oil revenues rose by 12 per cent to reach RO 4.649 billion by August 2024, up from RO 4.145 billion in the corresponding period of 2023.
Published: 03:10 PM,Oct 09,2024 | EDITED : 06:10 PM,Oct 09,2024
This growth is driven by the higher average oil price of $83 per barrel and average oil production of one million barrels per day.
MUSCAT: Oman’s total public revenues by the end of August 2024 reached RO 8.016 billion, marking an increase of RO 0.183 billion compared to RO 7.923 billion during the same period in 2023. The rise in revenue is largely attributed to higher net oil revenues.
According to the Ministry of Finance’s monthly bulletin, net oil revenues rose by 12 per cent to reach RO 4.649 billion by August 2024, up from RO 4.145 billion in the corresponding period of 2023. This growth is driven by the higher average oil price of $83 per barrel and average oil production of one million barrels per day. The increase is also linked to Oman Energy Development Company’s revenue collection methods and improved cash liquidity management.
In contrast, net gas revenues saw a 15 per cent decline, standing at RO 1.213 billion compared to RO 1.434 billion during the same period in 2023. This decrease is attributed to changes in the gas revenue collection methodology.
Additionally, current revenues fell by RO 0.104 billion, amounting to RO 2.230 billion, compared to RO 2.334 billion collected by August 2023.
Oman’s public spending by the end of August 2024 amounted to RO 7.659 billion, an increase of RO 0.509 billion (7 per cent) compared to the RO 7.150 billion recorded during the same period in 2023.
Civil ministries' current expenditures were one of the largest expenditure categories, reaching RO 5.434 billion, although this figure reflects a slight drop of RO 0.030 billion compared to the same period in 2023.
Development expenditures for ministries and civil units amounted to RO 0.735 billion, representing an 82 per cent disbursement rate from the total development budget of RO 0.900 billion allocated for 2024.
Contributions and other expenditures surged by 58 per cent, amounting to RO 1.440 billion, compared to RO 0.914 billion in the same period last year. This significant increase is attributed to the implementation of the social protection system.
Support allocations for the social protection system, the electricity sector, and petroleum products amounted to RO 0.373 billion, RO 0.295 billion, and RO 0.191 billion, respectively. Additionally, RO 0.266 billion was transferred towards debt repayment provisions.
On the global front, the Organization for Economic Co-operation and Development (OECD) projected in its September 2024 economic outlook that global growth will stabilize at 3.2 per cent for both 2024 and 2025, consistent with growth trends seen earlier this year. The OECD highlighted that the effects of tightening monetary policies in advanced economies have begun to moderate, with easing monetary policies and lower inflation expected to support interest rates in 2025.
The US Energy Information Administration (EIA), in its September 2024 report, forecasted that the average Brent crude price will be around $83 per barrel in 2024, rising slightly to $84 per barrel in 2025.
Locally, Standard & Poor’s raised Oman’s credit rating to “BBB-” with a stable outlook in its September 2024 report, marking the country’s return to the first tier of investment-worthy nations after seven years. The upgrade reflects Oman’s progress in improving public finances through development initiatives and economic reforms, alongside government restructuring efforts that have helped restore financial balance as outlined in the medium-term financial plan.
Standard & Poor’s also projected that Oman will achieve moderate financial surpluses of 1.9 per cent during 2024–2027, with real GDP growth expected to average around 2 per cent annually. Additionally, the current account balance is expected to show a surplus of 1.2 per cent of GDP. — ONA
According to the Ministry of Finance’s monthly bulletin, net oil revenues rose by 12 per cent to reach RO 4.649 billion by August 2024, up from RO 4.145 billion in the corresponding period of 2023. This growth is driven by the higher average oil price of $83 per barrel and average oil production of one million barrels per day. The increase is also linked to Oman Energy Development Company’s revenue collection methods and improved cash liquidity management.
In contrast, net gas revenues saw a 15 per cent decline, standing at RO 1.213 billion compared to RO 1.434 billion during the same period in 2023. This decrease is attributed to changes in the gas revenue collection methodology.
Additionally, current revenues fell by RO 0.104 billion, amounting to RO 2.230 billion, compared to RO 2.334 billion collected by August 2023.
Oman’s public spending by the end of August 2024 amounted to RO 7.659 billion, an increase of RO 0.509 billion (7 per cent) compared to the RO 7.150 billion recorded during the same period in 2023.
Civil ministries' current expenditures were one of the largest expenditure categories, reaching RO 5.434 billion, although this figure reflects a slight drop of RO 0.030 billion compared to the same period in 2023.
Development expenditures for ministries and civil units amounted to RO 0.735 billion, representing an 82 per cent disbursement rate from the total development budget of RO 0.900 billion allocated for 2024.
Contributions and other expenditures surged by 58 per cent, amounting to RO 1.440 billion, compared to RO 0.914 billion in the same period last year. This significant increase is attributed to the implementation of the social protection system.
Support allocations for the social protection system, the electricity sector, and petroleum products amounted to RO 0.373 billion, RO 0.295 billion, and RO 0.191 billion, respectively. Additionally, RO 0.266 billion was transferred towards debt repayment provisions.
On the global front, the Organization for Economic Co-operation and Development (OECD) projected in its September 2024 economic outlook that global growth will stabilize at 3.2 per cent for both 2024 and 2025, consistent with growth trends seen earlier this year. The OECD highlighted that the effects of tightening monetary policies in advanced economies have begun to moderate, with easing monetary policies and lower inflation expected to support interest rates in 2025.
The US Energy Information Administration (EIA), in its September 2024 report, forecasted that the average Brent crude price will be around $83 per barrel in 2024, rising slightly to $84 per barrel in 2025.
Locally, Standard & Poor’s raised Oman’s credit rating to “BBB-” with a stable outlook in its September 2024 report, marking the country’s return to the first tier of investment-worthy nations after seven years. The upgrade reflects Oman’s progress in improving public finances through development initiatives and economic reforms, alongside government restructuring efforts that have helped restore financial balance as outlined in the medium-term financial plan.
Standard & Poor’s also projected that Oman will achieve moderate financial surpluses of 1.9 per cent during 2024–2027, with real GDP growth expected to average around 2 per cent annually. Additionally, the current account balance is expected to show a surplus of 1.2 per cent of GDP. — ONA