MUSCAT: On the back of record revenues with oil prices more than doubling, the State Budget registered a surplus of RO 357 million by the first quarter of 2022 against a deficit of RO 751 million in the same period in 2021.
According to the Ministry of Finance, the total revenues registered a mammoth 66.3 per cent to reach RO 3.25 billion during the first three months of the current year against RO 1.819 billion in the corresponding period last year.
The surplus amount, says the quarterly bulletin from the ministry, “will be directed to stimulating economic recovery, increasing spending on priority development projects, reducing the level of indebtedness and managing its risks”.
According to the bulletin, net oil revenue witnessed RO 1.565 billion registering a record 70.2 per cent compared to the same period in 2021 as the country sold its crude for an average of $78 per barrel compared with $45 per barrel a year ago.
The average production rose to about 1.25 million barrels per day against 952,000 barrels per day during the period last year. Oman oil output hit a two-year high in March, with the country hitting its Opec+ quota for the first time this year. Taking advantage of seven-year high prices, exports topped pre-pandemic levels despite a sharp decline in demand from top buyer China.
Gas revenues, according to the bulletin, increased by about RO 454 million, or 124.4 per cent, compared to the same period in 2021, due to the rise in gas prices and the increase in production.
Current revenues increased by 23.7 per cent compared to the same period in 2021, as a result of the start of collection of value-added tax revenues by about RO 69 million and the excise tax by about RO 24 million, in addition to improving the processes of supplying government revenues.
The World Bank, in its report issued in April 2022 on the latest economic developments for the Gulf Cooperation Council countries, expected the Omani economy to recover in light of the continuation of measures to mitigate epidemic pressures, and the improvement in oil prices and production.
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