MUSCAT: The Ministry of Finance has unveiled in its latest report on Oman’s fiscal performance that revenue climbed 3 per cent to reach RO 5.463 billion for the Jan – May 2023 period, reflecting a steady growth trajectory compared to the previous year’s figure of RO 5.325 billion. This growth can be attributed to the significant contributions of key budget items, particularly net oil revenue amounting to RO 2.810 billion, net gas revenue at RO 1.003 billion, and current revenue totaling RO 1.644 billion.
The government's prudent financial management has also led to a significant increase in public spending, rising by 4% from RO 4.694 billion during Jan – May 2022 to RO 4.882 billion for the corresponding period in 2023. This strategic allocation of resources demonstrates the government's commitment to promoting development and addressing critical societal needs.
Furthermore, the state budget achieved a surplus of RO 581 million for the first five months of this year. Although slightly lower compared to the surplus of RO 631 million in 2022, this surplus will be strategically utilized to implement a liability management exercise, reduce public debt, and bolster social spending initiatives.
The positive performance indicators are underpinned by favourable dynamics in the oil market. The average oil price per barrel has risen from $82 in 2022 to $84 in 2023, accompanied by an increase in daily oil production from 1,034 thousand barrels to 1,064 thousand barrels. These upward trends have played a pivotal role in boosting the nation's fiscal performance and setting the stage for economic growth.
With this surplus and revenue growth, the government is now poised to allocate resources effectively and embark on strategic initiatives to address key national priorities. By focusing on targeted social spending, the government aims to improve citizens' well-being and enhance public services. Simultaneously, efforts to reduce public debt through liability management exercises will ensure long-term financial stability and sustainability.
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