Muscat – Oman’s budget surplus crossed the RO1bn mark in the first seven months of this year compared to a whopping deficit of RO1.2bn in the corresponding period of last year, owing to a sharp increase in the sultanate’s oil and gas income amid higher global energy prices.

Total public revenues jumped 53.5 per cent to over RO8bn during the January–July period of 2022 compared to RO5.215bn in the same period of 2021, according to data released by the Ministry of Finance.

‘At the end of July 2022, the budget achieved a surplus of RO1.019bn as compared to a deficit of RO1.206bn over the same period in 2021. This was driven by an increase in public revenue compared to public spending,’ the Ministry of Finance said in its monthly Fiscal Performance bulletin.

Helped by elevated energy prices and increased hydrocarbons output, Oman’s total oil and gas revenue surged 64.6 per cent to RO5.883bn in the first seven months of 2022 from RO3.574bn in January-July 2021.

While net oil revenue rose 45 per cent to RO3.827bn during the January–July period of 2022, gas revenue surged 120 per cent to RO2.056bn during the same period, the ministry’s data showed.

Oman’s daily average oil production remained 9.2 per cent up at 1.042mn barrels per day for the first seven months of 2022 compared to 954,000 barrels per day recorded in the corresponding period of 2021. The sultanate sold its crude oil at an average price of US$89 per barrel during the 2022 January–July period against an average price of US$54 per barrel in the same period of 2021.

Oman government’s current revenue also grew more than 30 per cent to RO2.107bn this year against RO1.615bn in the same period of 2021. The total current revenue also includes RO584mn in dividends received from Oman Investment Authority.

Spending up 8.8%

In the backdrop of increased revenues, the government increased total public spending – up 8.8 per cent – to RO6.984bn for the first seven months of 2022 as compared to RO6.420bn spent in the same period of 2021.

Current expenditure rose 12.2 per cent to RO5.430bn this year from RO4.838bn in the same period a year ago. Development expenditure was raised 27.7 per cent to RO479mn in the first seven months of 2022 from RO375mn in the same period of 2021.

Total contributions and other expenses (including subsidies) went up sharply to RO1.02bn in this period from RO462mn for the same period of 2021.

By the end of August 2022, Oman’s total public debt amounted to RO18.4bn, down by RO2.4bn compared to the end of 2021, as per the data released by the Ministry of Finance.

‘The sultanate’s liability management exercise reduced public debt by RO2.4bn as of end-August 2022,’ the ministry added.