Latest news with #publicrevenue
Times of Oman
2 days ago
- Business
- Times of Oman
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
Zawya
6 days ago
- Business
- Zawya
Oman maintains fiscal discipline in Q1 amidst lower oil revenue
MUSCAT: The Sultanate of Oman posted a fiscal deficit of RO 136 million in the first quarter of 2025, demonstrating continued government commitment to prudent financial management and strategic investments, even amidst a drop in hydrocarbon revenue and tightening global economic conditions. This is according to the Ministry of Finance's Fiscal Performance Bulletin for the January–March period. During the first quarter of 2025, total public revenue reached RO 2.635 billion. This represented a year-on-year decline of seven per cent compared to the RO 2.826 billion recorded in the same period of 2024. The decline was driven primarily by a reduction in oil and gas revenue. Net oil revenue stood at RO 1.468 billion, falling by 13 per cent from RO 1.688 billion a year earlier. Net gas revenue also declined marginally by two per cent to RO 436 million, down from RO 444 million. In contrast, current revenue increased by five per cent to RO 725 million, compared to RO 691 million in the same period last year. Despite revenue pressures, public spending rose to RO 2.771 billion, a four per cent increase compared to RO 2.664 billion in the first quarter of 2024. The increase is attributed to a strong rise in development expenditure, which grew by 27 per cent to RO 254 million. Meanwhile, current expenditure slightly decreased by one per cent to RO 1.967 billion. The government also allocated RO 490 million towards contributions and other expenses, including RO 144 million for the social protection system and RO 27 million in fuel subsidies. Additionally, RO 100 million was allocated to the budget line designated for future debt obligations. Spending on social sectors and basic services totalled RO 1.668 billion by the end of March 2025. This amount represented 40 per cent of total public spending. Of this allocation, 52 per cent was directed towards social welfare and security, twenty-five per cent towards education, sixteen per cent towards health services and seven per cent towards housing. The Ministry of Finance also maintained strong support for the private sector by paying more than RO 304 million to suppliers and contractors through the government's financial system. These payments were made within an average of five working days after the submission of complete documentation, reflecting the government's reliability and efficiency in fulfilling its financial obligations. Public debt declined to RO 14.3 billion at the end of the first quarter of 2025, compared to RO 15.1 billion in the same period of 2024. The Ministry attributed this reduction to the proactive repayment of outstanding financial obligations. To address financing needs for 2025, the government has announced a borrowing plan of RO 2.454 billion. This includes RO 1.836 billion to cover maturing debt instalments and RO 620 million to finance the anticipated fiscal deficit. The government aims to meet these requirements through a mix of Government Development Bonds and Local Sovereign Sukuk, with a total issuance value of RO 750 million planned across the year. This strategy is designed to ensure funding at sustainable cost and risk levels. The financing plan also supports three key objectives: enhancing the domestic debt market, diversifying investor participation and mitigating risks associated with public debt. According to the International Monetary Fund's April 2025 World Economic Outlook, global economic growth is projected to slow to 2.8 per cent in 2025. The global inflation rate is expected to ease to 4.2 per cent. Oil prices are forecast to average $66 per barrel in 2025, down from $73 per barrel during Oman's first quarter. Despite external headwinds, the Omani economy continued to expand. The gross domestic product at constant prices grew by 1.7 per cent in 2024, reaching RO 38.305 billion, up from RO 37.674 billion in 2023, according to the National Centre for Statistics and Information. Oman's first quarter fiscal performance reflects a government focused on stability, resilience and forward-looking reforms. With increased investments in development and social sectors, accelerated debt reduction and timely payments to the private sector, the government remains aligned with the goals of Oman Vision 2040. Despite global uncertainties, the Sultanate of Oman is maintaining a steady course towards sustainable growth and economic diversification. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Times of Oman
7 days ago
- Business
- Times of Oman
Oman's public revenues decline by 7% to reach OMR2.63bn by end of Q1 2025
Muscat: The State's public revenues decreased by 7% to reach OMR2,635 million by the end of Q1 2025 compared to OMR2,826 million recorded during the same quarter of 2024. This decline is primarily attributed to a reduction in hydrocarbon revenue, according to the Fiscal Performance bulletin issued by the Ministry of Finance. Net oil revenue amounted to OMR1,468 million as of the end of Q1 2025, representing a 13% decrease from OMR1,688 million collected during the same quarter of 2024. Net gas revenue reached OMR436 million as of the end of Q1 2025, reflecting a 2% decline from OMR444 million recorded in the same quarter of 2024. Current revenue stood at OMR725 million as of the end of Q1 2025, indicating a 5% increase, i.e., OMR34 million, from OMR691 million collected during the same quarter in 2024. By the end of Q1 2025, public spending reached OMR2,771 million, marking a 4% increase, i.e., OMR107 million, from OMR1,978 million recorded during the same quarter of 2024. This growth is primarily attributed to increased development expenditure compared to the same period in 2024. Moreover, current expenditure amounted to OMR1,967 million as of the end of Q1 2025, reflecting a 1% decrease, i.e., OMR11 million, from OMR1,978 million reported during the same quarter of 2024. Development expenditure of the ministries and government units reached OMR254 million as of the end of Q1 2025, representing 28% of total development expenditure, i.e. OMR900 million, allocated for 2025. Contribution and other expenses stood at OMR490 million as of the end of Q1 2025, indicating a 1% increase, i.e., OMR4 million, from OMR486 million recorded in the same quarter of 2024. The subsidies allocated to the social protection system and oil products amounted to OMR144 million and OMR27 million, respectively, as of the end of Q1 2025. Furthermore, OMR100 million was transferred to the future debt obligations budget item. By the end of Q1 2025, spending on social sectors and basic services reached OMR1,668 million. Moreover, the Ministry of Finance had paid over OMR304 million to the private sector, received through the financial system with complete documentation. This reflects the Ministry's commitment to settling fully documented private sector dues within an average of five working days. Furthermore, the government repaid several outstanding financial obligations, leading public debt to stand at OMR14.3 billion by the end of Q1 2025, down from OMR15.1 billion at the end of the same quarter in 2024.
