MUSCAT: Modest cuts have been announced in subsidy allocations across a range of utilities and essential services in the 2024 State Budget of the Sultanate of Oman. This is in line with the government’s commitment to gradually rolling back subsidies – part of its longstanding bid to reduce the budget deficit.
Subsidy allocations have been pared by about 5 – 10 per cent this year in comparison with corresponding figures for fiscal 2023. The electricity sector, typically the biggest beneficiary of government grants, saw allocations decline slightly to RO 460 million this year, down from an allocated RO 485 million in 2023. In contrast, however, the waste and wastewater sector posted a higher allocation of RO 184 million in subsidy this year, up from RO 135 million a year earlier.
Allocations for other utilities and services are as follows: Transport Sector: RO 84 million (on par with last year’s allocation of RO 84m); Solid Waste Sector: RO 59m (RO 45m in 2023); Food sector: RO 25m (similar to 2023); and Oil Products: RO 35m (RO 39 million in 2023).
On the flipside however, allocations towards Development & Housing Loan Interest climbed to RO 55 million this year, up from RO 23 million in 2023. A substantial allocation of RO 560 million was also announced towards the significantly expanded Social Protection System this year, up from RO 384 million towards the Social Protection Net in 2023. Contributions towards domestic, regional and international institutions soared to RO 40 million this year, up from RO 10 million a year ago.
Allocations towards ‘Future Debt Obligations’ were stable at RO 400 million this year as well, but grants towards developmental initiatives were pegged at RO 240 million this year, up from RO 200 million in 2023.
Total Contributions & Expenses, a key budgetary head that includes subsidies, soared to RO 2.177 billion this year, up from RO 1.830 billion in 2023, according to the Ministry of Finance.
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