MUSCAT: Omani government finances saw a shift in the first month of 2024, with spending rising at a faster pace than revenue, according to preliminary data unveiled by the Ministry of Finance on Thursday.
Public spending climbed 11% to RO 929 million compared to RO 837 million in the same period of 2023. Revenue, on the other hand, grew by a more modest 3%, reaching RO 1,014 million from RO 982 million. This resulted in a narrower surplus for the government, dipping to RO 85 million in 2024 from RO 145 million in 2023.
While oil production and average oil prices saw slight declines, the impact was partially offset by a significant increase in non-oil revenue. Notably, returns on government investments saw a surge of 132%, propelling current revenue (excluding oil and gas income) to RO 283 million in 2024, a sharp rise from RO 122 million the previous year.
Oil production averaged 1.040 million bpd this year, which was marginally lower than the previous year’s average of 1.063 million bpd. The oil price per barrel averaged US$90 in January 2024, versus an average of US$91 a year ago. Net oil revenue dipped to RO 595 million this year, down from RO 602 million in 2023.
The Finance Ministry report also highlighted progress in implementing Oman's Performance-Based Budgeting (PBB) system. This initiative aims to enhance fiscal responsibility by aligning spending with specific programs and activities.
With an overall achievement rate of 77.3%, the PBB system is steadily gaining traction across government units. The rollout has been supported by 130 foundation programs and pilot implementations in 60 government entities.
Key achievements of the PBB pilot program include the development of a PBB implementation guide, the preparation of program-based budgets by 246 government units for 2024, and the creation of detailed performance documents by 27 departments. These documents link departmental goals and tasks with performance indicators, ensuring alignment with Oman Vision 2040's strategic priorities.
The PBB initiative aims to achieve the following: Maximise efficiency in allocating available resources; Provide better fiscal planning; Boost performance and accountability; Enhance the efficiency of public spending management; an Geographically balanced regional development according to the strategic priorities of Oman Vision 2040.
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