Oman budget deficit down by 62.9 percent as oil prices recover

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Foreign Direct Investment into Oman increased by 19 percent in the first quarter of 2022.
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  • Oman’s total general revenues as at the end of October had increased 28.1 percent and stood at RO8.33 billion ($21.67 billion)
  • The revenues stood at RO6.5 billion ($16.91 billion) during the corresponding period in 2020

The monthly bulletin issued by the Ministry of Finance of Oman showed that the state budget deficit dropped significantly by a hefty 62.9 percent to RO1 billion ($2.6 billion) by the end of October 2021 from RO2.71 billion ($7.05 billion) during the corresponding period in 2020.

This could be seen a signal of economic recovery in the country which had been hit hard by the Covid-19 pandemic and the resulting decline in oil demand.

The ministry said the total general revenues as at the end of October had increased 28.1 percent and stood at RO8.33 billion ($21.67 billion), compared to RO6.5 billion ($16.91 billion) during the corresponding period in 2020.

This was due to the recovery of oil prices, coupled with a rise in demand for fuel, with oil prices averaging $58.89 by the end of October, said the ministry.

The development led to a 35.4 percent increase in oil revenues to around RO4.44 billion ($11.55 billion).

Meanwhile, gas revenues also soared by 50.6 percent to RO1.7 billion ($4.42 billion).

The ministry pointed out that current revenues also rose by 40.8 percent by the end of October to RO2.13 billion ($5.54 billion), compared to RO1.51 billion ($3.93 billion) during the corresponding period in 2020.

The bulletin also indicated that public spending maintained a moderate rate, standing at RO9.34 billion ($24.29 billion) in October this year, as against RO9.22 billion ($23.98 billion) in the year-ago period.

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