MUSCAT: Total revenues earned by the Sultanate of Oman till the end of February 2022 stood at about RO 1.918 billion, up by 75.6 per cent over revenue standing in the corresponding period in 2021.
This was unveiled by the Financial Economic Bulletin issued by the Ministry of Finance, which attributed the high surplus to a surge in oil price averaging $81 a barrel, as well as a rise in oil production as gas revenues touched RO 509 million.
This is in addition to the fact that current revenues rose by 29.6 per cent by the end of February 2022 (over the corresponding period in 2021) due to the collection of revenues of the Value Added Tax (VAT) and other fees, according to the bulletin.
Public spending until the end of February 2022 registered about RO 1.707 billion, and this was driven by a rise in the repayment of loan interests, total investment expenditures (development and capital) of civil ministries, and expenses of gas transport and procurement.
The Budget continued to achieve financial surplus at the end of February 2022, amounting to about RO 210 million, a far cry from RO 457 million financial deficit in the corresponding period in 2021.
The government embarked on a public debt reduction programme targeting a RO 19.46 billion mark by the end of
April 2022.
Recently, as part of its Debt Management Strategy, the Ministry of Finance said will cut down its public debt by more than RO 2.85 billion ($7.4 billion) at the end of April.
This is in addition to the ministry’s efforts to utilise fiscal surplus (emanating from the uptake of oil prices average rates) to minimise fiscal deficit and shrink the public debt portfolio’s cost and risks.
Budget 2022 earmarked RO 1.3 billion for the refund of interests on loans, but without prejudice to a commitment to repay maturating premiums to the tune of RO 2.7 billion.
The ministry has pointed out that steps are under way to tap other fiscal surpluses to inspire economic growth in line with the Royal directives to implement more development projects that support the private sector, notably by augmenting the Developmental Budget’s allocations to RO 1.1 billion. — ONA
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