Muscat: The Ministry of Economy held a media briefing dedicated to the State’s Budget for 2023.
Dr. Nasser al Maawali, Undersecretary, said the economy has achieved remarkable growth rates during the year 2022 due to the economic policies, structural reforms, and the rise in prices of crude oil.
Highlights:
- The Minister of Finance confirms during the meeting that income tax will not be applied in 2023 and The value-added tax rate will not be raised
- Preliminary estimates for the 2023 budget show that total public spending will be RO12.950 billion, up 7 percent from the approved spending in the 2022 budget.
- It is estimated that the 2023 budget deficit will amount to about RO1.3 billion, constituting 11 percent of total revenues and 3 percent of GDP.
- The Ministry of Finance shows that the total initial public revenues for the state’s general budget for the year 2023 were estimated at about RO11.650 billion, up by 10 percent from the approved budget for the year 2022.
- The average rate of oil production is expected to rise to 1.175 million barrels per day, at an average price of $55 per barrel.
- The government was able to control inflation and provided support for basic services, as the total support amounted to RO1.6 billion last year, and it will continue to provide support.
- Despite the expectations of a decline in the growth of the global economy, the national economy is expected to grow by 5 percent, driven by oil and non-oil activities.
- The estimated investment expenditures for the year 2023 are RO4.5 billion. of which RO1.1 billion is from the budget, RO1.9 billion is from the investments of the Omani Investment Authority, and RO1.5 billion is from Energy Development Oman (EDO).
- The establishment of the Integrated Gas Company is under consideration, which will be responsible for the purchase and sale of natural gas, and management of all allocations, assets, rights, and obligations related to the sale, purchase, import, and export of natural gas. It will operate on the lines of Energy Development Oman.
- Estimates of the state’s general budget until the end of 2022 indicate that the average price of oil is expected to reach $94, bringing revenues to RO14. 234 billion and spending RO13. 88 billion, to record a financial surplus of RO1. 146 billion.
- Foreign direct investments in the Sultanate grew to reach about RO17.9 billion by the end of the second quarter of 2022, benefiting from the initiatives and procedures established to attract investment.
- The Ministry of Economy said the most prominent new projects for the year 2023 are the construction of 15 schools in various governorates, the construction of a number of health centers in some states, the implementation of a number of dual and service roads, natural parks and dams, and the establishment of a fishing port in the Wilayat of Mahut.
- 35 new regulations have been issued to improve the business environment between 2020 and 2022.
- The Ministry of Economy clarifies that the total development expenditures from the beginning of the tenth five-year plan (2021-2025) until the end of November 2022 amounted to RO2. 029 billion.
- The Ministry of Commerce, Industry and Investment Promotion said 802,524 applications were submitted through “Invest Easy” and more than 765,324 licenses were issued automatically since the launch of the service in April 2021.
- The decision to government services fees between 17 and 100 percent aimed at stimulating and supporting the national economy and providing facilities to help beneficiaries of services.
- Oman Investment Authority is to spend RO 1.9 billion for business ventures in 2023, including expanding and enhancing existing projects, completing under-construction projects, and developing new projects.
- Due to improvements in oil prices, the economy's recovery from the effects of the Covid-19 pandemic, and the effectiveness of economic activities, the Sultanate’s GDP grew by 30.4% at current prices in the first half of 2022 compared to the first half of 2021.
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