Oman's public revenues increase by 16% in 2024
Muscat: The final account for the 2024 State Budget indicate that total public revenue reached OMR12,781 million in 2024, reflecting a 16% increase over the budgeted figure of OMR11,010 million. This growth was driven by increased hydrocarbon revenue.
By the end of 2024, public spending reached OMR12,241 million, reflecting an increase of 5% over the budgeted amount of OMR11,650 million.
This growth is primarily driven by higher subsidies for oil products, as well as increased development expenditures by civil ministries.
The actual performance for the Fiscal Year 2024 achieved a surplus of OMR540 million.
Net oil revenue by the end of 2024, amounted to OMR7,452 million, representing a 16% increase over the budgeted amount of OMR5,915 million for the year. This significant growth was primarily driven by a rise in average oil prices, which increased from the budgeted USD 60 per barrel to reach USD 82 per barrel.
On the other hand, average oil and condensate production stood at 997,000 barrels per day, against a budgeted projection of 1,031,000 barrels per day, representing a decrease of 34,000 barrels per day.
This decrease was primarily driven by the government's compliance with the voluntary production cuts set by OPEC+.
By the end of 2024, net gas revenue amounted to OMR1,822 million, representing a 16% increase over the budgeted amount of OMR1,575 million for the year. This growth is attributed to higher average selling prices of liquefied natural gas (LNG).
Non-hydrocarbon revenue by the end of 2024 stood at OMR3,507 million, down by OMR13 million, i.e., 0.4% compared to the approved budget estimates, representing 28% of total public revenue.
By the end of 2024, current revenue reached OMR3,472 million, up by OMR17 million compared to budgeted figures of OMR3,455 million.
Total tax and fee revenues reached OMR2,077 million by the end of 2024, reflecting a 5% increase from the approved budget estimate. This positive variance is largely due to increased corporate income tax revenue of OMR48 million and value-added tax revenue of OMR41 million, driven by the ongoing economic recovery.
By the end of 2024, non-tax revenue amounted to OMR1,395 million, representing a 3% decrease compared to the budgeted figure.
Public spending by the end of 2024 stood at OMR12,241 million, reflecting an increase of OMR591 million over the budgeted amount of OMR11,650 million. This growth is primarily driven by higher subsidies for oil products and the electricity sector, as well as increased development expenditures by civil ministries.
Moreover, current expenditure amounted to OMR8,534 million by the end of 2024, down by OMR39 million compared to a budgeted amount of OMR8,573 million. This reduction is mainly attributable to a decrease of OMR114 million in public debt servicing compared to the budgeted figure.
By the end of 2024, actual spending on defence and security amounted to OMR2,987 million, down by OMR83 million compared to the estimated figures in the 2024 budget.
The current and capital expenditure of civil ministries by the end of 2024, stood at OMR4,611 million, up by 4% compared to a budgeted amount of OMR4,453 million.
Public debt service by the end of 2024 reached OMR936 million, reflecting an 11% decrease from the budgeted figure of OMR1,050 million approved in the 2024 budget.
This decrease was due to the government's management of its financial obligations and the replacement of high-cost loans with lower-cost alternatives.
Actual spending on development projects of civil ministries and government units reached OMR1,498 million, up by 31% compared to approved allocations in the 2024 Budget. This increase is driven by increased financial allocations for development budgets across government units and governorates for2024, in addition to the settlement of outstanding dues owed to private sector companies executing these development projects.
Development expenditure for the infrastructure sector reached 44% of total development expenditure, while the social infrastructure sector amounted to 38% in 2024.
By the end of 2024, contributions and other expenses stood at OMR2,209 million, representing a 14% increase over the OMR1,937 million approved in the 2024 budget. This rise was mainly driven by higher petroleum product subsidies, which reached OMR232 million, compared to the budgeted OMR35 million. Additionally, subsidies to the electricity sector exceeded the budget by OMR105 million.
The Ministry of Finance paid more than OMR1.6 billion to the private sector by the end of 2024. This reflects the payment vouchers received through the e-financial system, which have completed the documentary cycle.
The Actual Performance for the Fiscal Year 2024 achieved a surplus of OMR540 million compared to a budgeted deficit of OMR640 million. This is due to higher hydrocarbon revenue.
By the end of 2024, public debt reached OMR14.6 billion, down by OMR660 million, compared to actual figures in 2023. This is as a result of repaying part of Government loans and obligations. -ONA
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