MUSCAT: The state’s general budget continues to achieve a financial surplus of OMR 357 million by the end of the first quarter of 2022, the monthly bulletin by the Ministry of Finance has revealed.

This growth is expected to be directed to stimulating economic recovery, increasing spending on priority development projects, reducing the level of indebtedness and managing its risks.

The monthly bulletin issued by the Ministry of Finance has indicated that the state’s public revenues, until the end of the first quarter of 2022, has increased by 66.3 percent. Compared to the same period of 2021, the total revenues collected amounted to over OMR 1.8 million.

This rise is mainly due to the increase in net oil revenues at the end of the first quarter of 2022 by 70.2 percent, recording about OMR 1.5 million compared to the same period in 2021 due to the increase in the average oil price achieved to about 78 USD per barrel.

The rise in the average production amounted to about 1,25,000 barrels per day, compared to the price achieved during the same period in 2021, which amounted to 45 USD, with an average production of about 9,52,000 barrels per day.

Gas revenues increased by about OMR 454 million or 124.4%, compared to the same period in 2021, due to the rise in gas prices and the increase in production.

Current revenues increased by 23.7% compared to the same period in 2021, as a result of the start of collection of value-added tax revenues by about OMR 69 million and the excise tax by OMR 24 million, in addition to improving the processes of supplying government revenues.

Total public spending until the end of the first quarter of 2022 amounted to over OMR 2.6 billion, registering an increase of 3.8% over the actual expenditure for the same period in 2021.

Ministries and civil units recorded consistency in the rate of spending compared to the same period in 2021, and spending on the public debt service item – which is designated for paying interest on loans – amounted to about OMR 291 million.

The percentage of development expenditures for ministries and civil units increased by about 130.8% to reach about OMR 150 million, compared to the end of the first quarter of 2021. Expenditure on contributions and other expenditures amounted to about OMR 179 million, of which OMR 50 million was allocated to the provision for debt repayment.

Subsidies for petroleum products amounted to about OMR 67 million, after the decision issued in November 2021 to fix the prices of vehicle fuels according to the average month of October 2021 as a maximum, and so that the government bears the differences resulting from any increase in oil prices until the end of 2022.

And the state’s general budget achieved a financial surplus at the end of the first quarter of 2022, amounting to about OMR 357 million, compared to recording a financial deficit of OMR 751 million in the same period in 2021.

The bulletin indicated that the Ministry of Finance paid by the end of the first quarter of 2022 about OMR 146.4 million, dues paid to the private sector received through the financial system and completed for the documentary cycle.

On the other hand, the World Bank, in its report issued in April 2022 on the latest economic developments for the Gulf Cooperation Council countries, expected the Omani economy to recover in light of the continuation of measures to mitigate epidemic pressures, and the improvement in oil prices and production. 

As the GDP of the Sultanate of Oman is expected to achieve a growth of up to 5.6 percent, supported by a growth of more than 8% and 2% percent in the oil and non-oil sectors respectively in 2022, with expectations of a decrease in GDP growth to 2.7% on average during 2023-2024.