Muscat – Oman’s budget surplus shrank 31% to RO702mn in the first seven months of 2023, compared to RO1.019bn recorded in the corresponding period last year, mainly due to a sharp decline in the sultanate’s gas revenues this year.

Total public revenues decreased to RO7.183bn in the January–July period this year, down 10% compared to RO8.003bn registered in the same period of 2022, according to the Fiscal Performance Bulletin published by the Ministry of Finance on Monday.

Net oil revenue amounted to RO3.714bn, a decrease of 3% compared to RO3.827bn registered over the same period in 2022. Oman’s average oil price stood at US$83 per barrel and average oil production was 1,058,000 barrels per day during the first seven months of 2023.

Net gas revenue also dropped – 35% to RO1.329bn in the first seven months of 2023, compared to RO2.056bn registered in the same period of 2022.

‘This decline (in net gas revenue) is due to the deduction of gas purchase and transport expenses from the total revenue collected from the Integrated Gas Company,’ the Ministry of Finance bulletin noted.

The government’s current revenue, however, increased 1% to RO2.132bn during the January–July period of 2023 against RO2.107bn collected in the same period of 2022.

Spending down 7%

Oman’s total public spending for the first seven months of 2023 decreased 7% to RO6.481bn compared to actual spending over the same period in 2022.

Of the total public spending, current expenditure amounted to RO4.836bn, down 11% compared to RO5.430bn registered over the same period in 2022.

During the first seven months of 2023, development expenditure of ministries and government units totalled RO491mn, representing 55% of the total development spending allocated for the full year 2023.

Oil product subsidies and other sectors’ subsidies amounted to RO180mn and RO11mn in the first seven months of 2023, respectively. Furthermore, an amount of RO233mn was transferred to the future debt obligations budget item, the ministry stated.