Estimated budget deficit to reach about OMR1.3 billion

Oman Sunday 01/January/2023 16:39 PM
Estimated budget deficit to reach about OMR1.3 billion

Muscat: The estimated deficit in the 2023 budget is expected to reach about OMR1.3 billion, which means 13 percent of total revenues and 3 percent of GDP.

It is planned to finance the deficit of OMR900 million through internal and external borrowing, and about OMR400 million through withdrawals from reserves.

The Sultanate of Oman will not resort to borrowing and withdrawing from reserves to finance the 2023 budget deficit in the event of an increase in public revenues and the realisation of additional financial revenues, especially the increase in the average price of a barrel of oil compared to what is endorsed according to the principle of hedging by $55 per barrel.

The government may borrow to refinance government loans and replace them with low-cost loans.

Regarding the investment spending, the volume of investment spending financed by Oman Investment Authority (OIA) in the 2023 budget was estimated at about OMR1.9 billion, while the contribution of the Energy Development Oman (EDO) in investment projects for oil and gas production was estimated at OMR1.5 billion.