MUSCAT: Preliminary data from the Ministry of Finance indicates that the Sultanate Oman achieved a budgetary surplus of approximately RO 931 million in 2023.
Commenting on the surplus, Minister of Finance Sultan al Habsi shed insight on how the government utilised this surplus amount. “The general state budget for the fiscal year 2023 achieved additional financial revenues that were directed towards enhancing social spending and stimulating economic growth. This was reflected in various aspects, including raising the commitments of projects in the tenth five-year plan from RO 5 billion to over RO 8 billion by the end of 2023.”
Al Habsi emphasized that social projects were prioritized. “Priority was given to projects with a social dimension, such as those in the education, health, and housing sectors.”
According to the data, RO 261 million was allocated for oil subsidies, RO 46 million for power, water, sanitation, and waste management sector subsidies, and RO 17 million for housing and developmental loans subsidies.
Furthermore, an amount of RO 51 million was allocated to enhance the health and education sector budgets to expand their scope of services, while RO 19 million was utilized to increase social security and low-income citizen benefits.
Part of the surplus was used in repaying the public debt, he said. “Some of the financial surpluses were also directed towards reducing public debt and managing financial risks. These measures were met with an improvement in Oman's credit rating by credit rating agencies, alleviating the impact of the expected rise in interest rates on loans. Additionally, direct savings in the public debt service amounted to approximately RO 140 million. “
Speaking at the annual state budget briefing on Monday, Under-Secretary of Finance Abdullah al Harthi added that financial allowances for students studying abroad were increased by an average of 25 per cent to cope with global inflation and 150 external scholarships were added.
Moreover, he shared that a total of 306 loans provided to small and medium-sized enterprises were waived.
The 2024 State budget projects a total revenue of RO 11.010 billion and a public expenditure of RO 11.650 billion, resulting in a total deficit of RO 640 million for the year.
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