MUSCAT: The State Budget ratified by His Majesty Sultan Haitham bin Tarik for the year 2024, is the fourth budget under the Tenth Five-Year Development Plan (2021–25), i.e., the first phase toward Oman’s Vision 2040. It has been prepared keeping in view the challenges faced by Oman on account of the recent geopolitical events, and economic and oil price uncertainties.
The preliminary results for the year 2023 indicate a surplus recorded in comparison with the substantial deficits recorded in earlier years. This is mainly on account of realisation of higher oil price than the budget, the efforts made by various government units in controlling expenditure, reduction in public debt, and measures taken to increase non-hydrocarbon revenue. Through such measures, the Government utilized the surplus to further reduce its public debt, stimulate economic recovery and enhance social spending.
Key credit rating agencies (S&P Global, Moody’s and Fitch) recognised Oman’s above efforts during 2023 and issued their assessment reports on Oman’s credit rating with a Stable outlook. These recent ratings for Oman notably demonstrate a reversal in the downward trend over the previous years and have led to mitigating the impact of rising interest rates on loan repayments.
The 2024 budget highlights significant economic activity, including development and investment expenditures in various strategic projects, along with social and basic spending in key sectors of education, health, social welfare and housing.
The Government is implementing the National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) to develop the financial sector as a key enabler for investment and economic growth.
In line with the objectives of Oman Vision 2040 and Medium-Term Fiscal Plan (2021–25), the 2024 budget aims to maintain financial, economic and social stability, and sustainable growth.
Further, oil price is assumed at $60 as a precaution against the current oil prices volatility, on account of which a budget deficit is estimated for 2024.
Looking ahead, Oman intends to implement a sustainable finance framework to help achieve its sustainability strategies (economic, environmental, social and others). This shall help Oman achieve its goals for the Tenth Five-Year Development Plan, Oman Vision 2040, Zero Neutrality Plan 2050 and Sustainable Development Goals 2030. [Courtesy: EY]
Oman Observer is now on the WhatsApp channel. Click here
