Muscat: Preliminary results indicated that the state's general budget for the fiscal year 2022 witnessed remarkable positive development. The financial performance of the budget improved, recording an increase in revenues by 34.5 percent compared to what was endorsed at the beginning of 2022, with expectations of achieving a financial surplus of about OMR1.146 billion compared to an estimated deficit at the beginning of the year of about OMR1.550 billion.
Public revenues for the 2022 budget recorded about OMR14.234 billion, compared to what was endorsed at the beginning of the year, which amounted to OMR10.580 billion.
This rise is mainly attributed to the surge in average oil prices achieved to about $94 per barrel, compared to $50 per barrel approved in the budget, and the increase in oil revenues by 66 percent, to reach about OMR7.457 billion, and total gas revenue by 29 percent, to reach about OMR3.557 billion.
The preliminary results of the financial performance for the 2022 indicated that a financial surplus of about OMR1.146 billion was achieved. Therefore, the government did not resort to borrowing and withdrawing from reserves to finance the deficit, which is estimated at about OMR1.550 billion as approved in the 2022 budget.
The 2022 budget achieved additional financial revenues as a result of the rise in global oil prices. This contributed to accelerating economic recovery and improving financial and economic indicators, by directing these additional financial revenues towards managing the lending portfolio, reducing public debt, enhancing social spending, and stimulating economic growth.
The additional financial revenues enabled the government to pay off part of the public debt and manage the lending portfolio. This contributed to reducing the total volume of public debt from OMR20.8 billion at the end of 2021 to OMR17.7 billion in 2022. The public debt ratio decreased in 2022 to reach about 43 percent of the GDP compared to the percentage estimated in the Medium-Term Fiscal Plan (83 percent).