With oil prices at a record high, the Sultanate of Oman will use the surplus revenues to support the government spending on more projects and reduce public debt.
“Any surplus resulting from the high oil revenues will be used as much as possible to settle the country’s debt while looking at spending on development’’, the government has said.
It said that additional projects with priority for basic facilities, including hospitals, new school buildings, maintaining the existing ones and new roads, will be included in the Tenth Five-Year Development Plan.
Thanks to the high prices of Oman crude, the Sultanate of Oman achieved a budget surplus of RO 18 million in January 2022, compared to a deficit of RO 282.9 million in January 2021.
At the same time, revenues increased by 85.2 per cent to RO 803.3 million in January 2022, compared to RO 433.7 million during the period last year.
Figures released by the Ministry of Finance show a 9.59 per cent rise in general spending, which was RO 785.3 million in January this year, compared to RO 716.6 million in January 2021.
Crude prices hit a record high, touching nearly $127 a barrel on March 9 following the Russia-Ukraine war, which widened the gap between stagnating supply and growing demand.
In Royal directives following His Majesty’s meeting with shaikhs from the governorates of North Al Batinah, Al Dhahirah and Al Buraimi, the Ministry of Finance announced a number of additional projects which were added to the Tenth Plan. The projects include building of Alnama Hospital in North Al Sharqiyah Governorate, Samayil Hospital in Al Dakhiliyah Governorate and Alfalah Hospital in South Al Sharqiyah Governorate.
While funds will be allocated for completing the compensation payments for properties affected by the Al Batinah Coastal Road project, construction of 76 schools will be completed during the 10th Plan.
Also included are phase one of the Khasab Airport and development of waterfront of Dahariz Beach in Dhofar Governorate and enhancing tourist facilities and water ponds at Wadi Bani Khalid in North Al Sharqiyah Governorate.
In addition, construction of a number of road projects, including Dibba-Lima-Khasab road and linking it to Kumzar in Musandam Governorate, dualisation of Ansab-Jafnayn road phase 2, completion of Al Batinah Coastal Road phase 1, improving roads of Burj Al Sahwa roundabout and intersections of Al Mawaleh and expansion of Muscat Expressway.
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