Muscat – Oman’s budget surplus increased to RO1.2bn in the first 10 months of 2022 as compared to a whopping deficit of more than RO1bn in the same period of 2021, mainly due to higher oil and gas revenues.

The sultanate’s total government revenues surged more than 42 per cent to RO11.862bn during January – October period this year, up from RO8.333bn in the same period a year ago, according to data released by the Ministry of Finance.

Hydrocarbon (oil and gas) revenues jumped by more than 50 per cent to RO9.244bn in the first 10 months of this year from RO6.141bn recorded over the same period in 2021.

‘Such increase [in revenues] is supported by higher average oil price of US$95 per barrel as well as an increase in oil production to 1.056mn barrels per day,’ the Ministry of Finance said in its monthly Fiscal Performance bulletin.

Net oil revenue in the first 10 months of 2022 jumped more than 39 per cent to RO6.193bn, while natural gas revenue surged by nearly 80 per cent to RO3.051bn, the data showed.

Public spending up 14%

Oman’s total public spending during January – October period this year was recorded at RO10.654bn, which is RO1.315bn (or 14 per cent) higher compared to the same period a year ago.

Development expenditure increased by 10 per cent to RO765mn rials in the first 10 months of 2022, which represents 70 per cent of the RO1.1bn allocated for total developmental spending for the full year.

The sultanate’s current expenditure increased 9.5 per cent to RO7.879bn in the first 10 months of this year when compared to the same period a year ago.

By the end of October 2022, oil products and electricity subsidies amounted to RO610mn and RO450mn, respectively, the ministry said.

Helped by improving fiscal position due to the government reforms and higher oil prices, the sultanate’s sovereign credit ratings have been upgraded by various global rating agencies this year.

Recently, S&P raised its foreign and local currency long-term sovereign credit ratings of Oman to ‘BB’ from ‘BB-‘, the agency’s second upgrade for Oman this year.

‘Oman’s fiscal and external positions are benefiting from government reforms and higher oil prices. In addition to rebuilding fiscal buffers on the back of windfall oil revenue, the Omani government has continued to reduce the budget’s reliance on oil receipts, in line with its medium-term fiscal plan till 2025,’ S&P said.