Muscat: Sultanate of Oman's public revenues by the end of October 2023 reached approximately RO9.8 billion, marking a 17 percent decline from the RO11.86 billion reported in the corresponding period of 2022, as per the financial performance bulletin issued by the Ministry of Finance.
A detailed examination reveals that net oil revenues contracted by 12 percent to RO5.446 billion, against RO6.193 billion in October 2022. This decline occurred despite an average oil price of $81 per barrel and a steady production rate of approximately 1.53 million barrels per day.
The financial bulletin further highlighted that net gas revenues plummeted by 43 percent to RO1.734 billion, down from RO3.051 billion as of October 2022. This sharp decrease is attributed to a change in the gas revenue collection methodology by the Integrated Gas Company, which now accounts for net gas revenues after the deduction of gas purchase and transportation expenses.
Conversely, current revenues showed a marginal increase of RO14 million, totaling RO2.608 billion, compared to RO2.594 billion in the same tenure of the previous year.
On the expenditure front, total public spending by the end of October 2023 was RO8.97 billion, a decrease of RO1.684 billion or 16 percent, compared to the actual spending of RO10.654 billion for the same period in 2022.
The report further breaks down current expenses, which slightly decreased by RO7 million to RO6.872 billion, down from RO6.879 billion. This minor decrease is primarily due to the change in spending methodology on gas purchases and transport, in line with the financial practices of the Integrated Gas Company, which now bears the expenses for these services.
Development expenditures for ministries and other civil entities reached RO770 million by the end of October, representing an 86 percent utilization rate of the total RO900 million development budget for the year 2023.
Other expenditures, including contributions, totaled RO1.278 billion, marking a 21 percent reduction from the RO1.527 billion recorded in the same period of 2022.
Specifically, the budget allocations for supporting the electricity sector and for petroleum product subsidies were reported at RO408 million and RO236 million respectively. Additionally, the transfer to the provision for debt repayment was documented at RO333 million.
Concluding the report, the Ministry of Finance stated that Oman's general budget had a financial surplus of RO830 million by the end of October 2023, a downturn from the RO1.2 billion surplus observed in the same period of the previous year.
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