Muscat: His Majesty Sultan Haitham bin Tarik has issued a Royal Decree 1/2022 on the ratification of the State’s General Budget for Fiscal Year 2022.
Article (1) ratifies the State’s General Budget for Fiscal Year 2022 according to the tables/schedules attached to this decree.
Article (2) instructs all units of the State’s Administrative Apparatus and other public legal entities to implement the provisions of this decree, each within the scope of its prerogatives.
Article (3) says that this decree shall be published in the Official Gazette and enforced from the first day of January 2022.
The total estimated revenues of the state’s general budget for the year 2022, which was calculated on the basis of the oil price of $50 per barrel, amounted to RO10. 580 billion, an increase of six percent over the estimated revenues for 2021.
Total public spending is estimated at about RO12.130 million in 2022, an increase of two percent over the estimated expenditure for the year 2021, and this includes the cost of servicing the public debt amounting to about RO1.3 billion.
It is estimated that the budget deficit in 2022 will be about RO1.5 billion, representing 15 percent of the total revenues and five percent of the GDP, and it is within the limits of the estimated deficit in the medium-term financial plan.
The deficit will be financed through external and domestic borrowing, while the rest of the deficit, estimated at about RO400 million, will be financed by drawing from the reserves.
Around 40 percent of the total current spending will be on basic services.
The total estimated revenues for the year 2022 is RO10.58 billion, of which the non-oil revenues are estimated to be RO3.34 or 32 percent.
The goal of the general budget 2022 is to maintain sustainable levels of public spending and to continue raising the contribution of non-oil revenues.