Public service ministries receive 38% of total budget outlay

MUSCAT: More than a third of public expenditure earmarked in the 2023 General Budget will go towards public service ministries, affirming the Omani government’s continued commitment to the welfare of the Omani population.

Overall social and basic services expenditures aggregate RO 4.3 billion this year, accounting for 38 per cent of total public expenditure as follows: 44 per cent for the education sector, 22 per cent for social security and care, 13 per cent for the housing sector, and 22 per cent for the health sector.

Earlier, His Majesty Sultan Haitham bin Tarik issued Royal Decree 1/2023 ratifying the State’s General Budget for Fiscal Year 2023.

Public revenues are expected to amount to RO 10.050 billion, a decrease of 5 per cent from what was approved in the budget for the year 2022.

The contribution of hydrocarbon revenue will amount to 66.8 per cent at RO 6.720 billion. Oil revenue is estimated to amount to RO 5.320 billion, while gas revenue is estimated to amount to RO 1.400 billion.

Non-hydrocarbon revenue will amount to a total of RO 3.330 billion.

Current revenues are estimated to amount to RO 3.280 billion, including RO 1.330 billion from government service fees, RO 800 million in the form of dividend payments from Oman Investment Authority (OIA), RO 590 million from value-added and excise taxes, and RO 560 million from corporate income tax.

Total public spending is set at RO 11.350 billion, 6.4 per cent less than the corresponding figure for the year 2022. Around 76 per ent of the total expenditure will be allocated towards Ministries and Government Units (RO 4.420 billion), Defence and Security (RO 3 billion) and public debt services (RO 1.2 billion).

The total expenditure allocated towards ministries and government units has been increased by 2.7% from the previous year to factor in periodical allowances and staff promotion.

The estimated deficit would amount to RO 1.300 billion, equating to 13 per cent of total revenues and 3 per cent of the gross domestic product. The deficit will be financed by domestic and external borrowing of RO 900 million and a withdrawal of about 400 million from the State's reserves.

However, the Ministry of Finance stated that it would not resort to withdrawing from State reserves in case of an increase in public revenues or the establishment of additional financial revenues.