MUSCAT, JUNE 2
Oman's 2023 budget showcased a commitment to fiscal responsibility and strategic investment. While initially projected to face a deficit, the year ended with a surplus of RO 936 million (approximately $2.4 billion). This positive outcome stemmed from exceeding revenue expectations in both hydrocarbon (oil and gas) and non-hydrocarbon sectors, according to the Ministry of Finance.
Sharing details about performance of the 2023 State Budget, the Ministry noted that the higher revenues allowed the government to pursue a multi-pronged approach. A significant portion (RO 2.3 billion) was directed towards debt reduction, a move that strengthens Oman's long-term financial stability. Social spending also received a boost with an additional RO 331 million allocated to ease the burden on citizens. Increased subsidies for essential goods like oil products, cooking gas, and utilities ensured affordability.
Economic growth was not neglected either. The government strategically invested an additional RO 71 million in crucial areas like health and education to build a skilled workforce for the future. Additionally, subsidizing development and housing loan interest rates (RO 52 million aimed to stimulate economic activity.
The effective management of the 2023 budget extends beyond the surplus itself. Analysing spending patterns reveals a focus on efficient use of resources. Civil ministries saw increased spending (RO 196 million).
Furthermore, development expenditure exceeded its allocation by RO 263 million, primarily directed towards infrastructure (roads, airports) and social infrastructure (education, healthcare) – crucial sectors for long-term development. The breakdown by sector (infrastructure, social infrastructure, services, and goods) highlights a diversified approach aimed at strengthening various aspects of the Omani economy and society.
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