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Oman’s public revenues drop 15% in first 4 months of 2024

11 Jun 2024 By OUR CORRESPONDENT

Muscat – Oman’s total public revenues dropped by 15% to RO3.744bn in the first four months of 2024 compared to RO4.392bn recorded in the corresponding period of last year.

The decline in total revenues was mainly due to a decrease in both hydrocarbon and non-hydrocarbon revenues during the January-April period this year, according to the Fiscal Performance Bulletin issued by the Ministry of Finance on Tuesday.

The sultanate’s net oil revenue amounted to RO2.237bn for the first four months of this year, a decrease of 3% compared to RO2.308bn registered over the same period in 2023. This decline was due to lower oil prices and production compared to 2023.

The average realised oil price came to $82 per barrel for this year compared to $88 per barrel in the same period a year ago. Oman’s average oil production slightly decreased to 1.009mn barrels per day during the first four months of 2024 against 1.064mn barrels per day in the same period of 2023.

On the other hand, net gas revenue sharply fell by 38% to RO565mn in the January-April period this year compared to RO908mn in the same period a year ago. This decline in 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 said.

Furthermore, the government’s current revenue reached RO938mn in the four-month period ended April 2024, falling by RO234mn compared to the RO1.172bn current revenue registered over the same period in 2023.

As a result of lower hydrocarbon and non-hydrocarbon revenues, Oman’s budget surplus for the first four months of 2024 sharply declined to RO147mn from the RO520mn surplus recorded in the same period of 2023.

Spending decreased 7%

During the first four months of 2024, Oman’s total public spending amounted to RO3.597bn, decreasing by 7% or RO275mn compared to the actual spending over the same period in 2023. Of the total spending, current expenditure in the first four months of this year reached RO2.678bn, up by RO4mn compared to RO2.674bn registered over the same period in 2023.

Meanwhile, development expenditure of ministries and government units amounted to RO304mn during the January-April period of 2024, representing 34% of the total development spending, i.e., RO900mn, allocated for 2024.

Contributions and other expenses amounted to RO615mn, increasing by 68% compared to RO365mn spent over the same period in 2023. The social protection system subsidy, oil products subsidy, and electricity sector subsidy amounted to RO186mn, RO96mn, and RO83mn, respectively, for the first four months of 2024. Furthermore, an amount of RO133mn was transferred to the future debt obligations budget item.

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