Public debt shrinks to RO 15.1 billion

Muscat: The financial performance report issued by the Ministry of Finance on Monday revealed key financial indicators, including the public debt, revenues, oil and gas net incomes, and expenditures for the first quarter of 2024.

The size of the public debt of the Sultanate of Oman stood at about RO 15.1 billion at the end of March 2024, compared to RO 15.3 billion at the end of 2023, comprising a decrease of about RO 188 million.

By the end of Q1 of 2024, the Ministry of Finance repaid more than RO 206 million to the private sector. This reflects the payment vouchers received through the e-financial system that have completed the documentary cycle.

At the end of Q1 of 2024, the public revenue amounted to RO 2.826 billion, down by 12% compared to RO 3.217 billion registered over the same period in 2023. This is mainly due to a decrease in net oil and gas revenues and current revenue.

At the end of Q1 of 2024, the net oil revenue amounted to RO 1.688 billion, down by 1% compared to RO 1.707 billion registered over the same period in 2023. The average realized oil price amounted to US$ 83 per barrel and average oil production reached 1,014,000 barrels per day.

At the end of Q1 of 2024, the net gas revenue amounted to RO 444 million, down by 38% compared to RO 720 million registered over the same period in 2023. This is due to the deduction of gas purchase and transport expenses from the total revenue collected from Integrated Gas Company. At the end of Q1 of 2024, the current revenue amounted to RO 691 million, down by RO 96 million compared to RO 787 million registered over the same period in 2023.

At the end of Q1 of 2024, the public spending amounted to RO 2.664 billion, down by RO 103 million, i.e. 4% compared to the same period in 2023.

At the end of Q1 of 2024, the current expenditure of civil ministries amounted to RO 1.978 billion, down by RO 49 million compared to RO 2.027 billion registered over the same period in 2023.

At the end of Q1 of 2024, the development expenditure of ministries and government units amounted to RO 200 million, representing 22% of total development spending, i.e. RO 900 million, allocated for 2024.

At the end of Q1 of 2024, the total contributions and other expenses amounted to RO 486 million, up by 78% compared to RO 273 million registered over the same period in 2023. This is mainly due to the application of social protection system, alongside oil products subsidy which amounted to RO 140 million and RO 72 million, respectively, by the end of Q1 2024. Furthermore, an amount of RO 100 million was transferred to future debt obligations budget-item.

In recent years, the Sultanate of Oman has successfully reduced its public debt to minimize the risks associated with its debt portfolio, by implementing various measures and initiatives to rationalize public spending and increase non-hydrocarbon revenue. Furthermore, this was achieved by utilizing part of the additional revenue for liability management through buy-back some of the sovereign bonds for less than its nominal value, replacement of high-cost loans with low-cost loans and issuance of Sukuk and domestic bonds in the Muscat Stock Exchange at a preferable rate.

Government efforts to reduce public debt and mitigate its effects on economic growth have directly contributed to raising Oman’s credit rating and improving its outlook. The credit rating agencies have praised government efforts in managing financial obligations and reducing public debt.