Muscat – Reaping the benefits of strong economic recovery and higher oil and gas prices this year, Oman recorded a further RO111mn increase in its budget surplus in April.

Oman’s total budget surplus increased to RO468mn for the January–April period of 2022 against a deficit of RO828mn in the same period of 2021, data released by the Ministry of Finance showed on Monday.

The ministry said that the surplus will be utilised for strengthening economic recovery by increasing spending on priority development projects and reducing public debt.

Total public income rose more than 52 per cent to RO4.217bn in the first four months of 2022 compared to RO2.769bn in the same period a year ago.

‘This (rise in public income) is mainly due to an increase in oil revenue, driven by improved oil prices and higher oil production,’ the Ministry of Finance said in its Fiscal Performance bulletin released on Monday.

It said total oil and gas income rose 74.3 per cent to RO3.13bn during the 2022 January–April period compared to RO1.796bn recorded in the corresponding period of 2021.

Net oil revenues rose 52.7 per cent to RO2.059bn, while gas revenues jumped 139 per cent to RO1.071bn in the first four months of 2022.

Oman crude was sold at an average price of US$80 per barrel in the first four months this year compared to US$47 in the same period of 2021.

Daily average oil production was 8.3 per cent higher at 1.03mn barrels per day in 2022 against 952,000 in 2021.

Spending up 4.2%
The sultanate’s total public spending reached RO3.749bn during the January–April period of this year, an increase of 4.2 per cent over the same period in 2021.

Of the total public spending, current expenses of ministries and government units remained at the same level as last year at RO1.278bn, the Ministry of Finance noted.

Development spending sharply increased by 76.2 per cent to RO252mn in the first four months of 2022 against the same period a year ago.