Positive Surplus in Oman’s General Budget for 2023
Oman’s financial landscape experienced a significant turnaround in 2023, with the general budget recording an actual surplus of RO936mn, compared to an initially estimated deficit of RO1.3bn. This surplus was driven by higher-than-expected oil and gas revenues during the year.
The Ministry of Finance allocated the additional revenue towards liability management, reducing public debt, enhancing social spending, and boosting economic growth. As a result, Oman’s credit ratings improved and the total public debt decreased by RO2.3bn.
Revenue Growth and Spending Increase
Oman’s general revenues grew by 25% in 2023, primarily due to increased hydrocarbon and non-hydrocarbon revenues. Net oil revenue surged by 34% to RO7.150bn, while gas revenue reached RO1.868bn. Non-oil revenue also increased by 6% due to higher contributions from companies’ income tax and VAT.
On the other hand, total expenditures slightly increased by 2% to RO11.606bn, with a focus on social spending, economic growth, subsidies, and development projects. Overall, Oman’s financial and economic standing saw a positive transformation in 2023.
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