Muscat – Oman’s total public spending rose by 7% during the first eight months of 2024, primarily due to increased government subsidies and development expenditure this year.

Total public spending amounted to RO7.659bn during the January–August period of this year, up by RO509mn compared to the actual spending of RO7.150bn recorded during the same period in 2023, according to data released by the Ministry of Finance on Wednesday.

Of the total spending, the current expenditure of civil ministries, the largest component of Oman’s public spending, amounted to RO5.434bn in the first eight months of 2024, down by RO30mn compared to RO5.464bn registered over the same period in 2023.

The development expenditure of ministries and government units rose by 28% to RO735mn, representing 82% of the total development spending, which is RO900mn allocated for 2024, the Ministry of Finance said in its monthly Fiscal Performance Bulletin.

During the first eight months of 2024, total contributions and other expenses amounted to RO1.440bn, a sharp increase of 58% compared to RO914mn recorded over the same period in 2023. The Ministry of Finance mentioned that the increased expenditure in the contributions and other expenses category was due to the implementation of the social protection system in 2024.

The subsidies for the social protection system, electricity sector, and oil products during the January–August period of 2024 amounted to RO373mn, RO295mn, and RO191mn, respectively. Additionally, RO266mn was transferred to the future debt obligations budget item, the ministry added.

Revenues up 2%

Oman’s total public revenue amounted to RO8.106bn in the first eight months of this year, up by RO183mn, or 2%, compared to RO7.923bn registered over the same period in 2023. This slight increase in total revenues is mainly due to an uptick in net oil revenue, the ministry noted.

Oman’s net oil revenue reached RO4.649bn for the first eight months of 2024, up by 12% compared to RO4.145bn recorded during the same period in 2023. The sultanate’s average realised oil price was $83 per barrel, with average oil production reaching 1.001mn barrels per day during the January–August period of this year. The ministry attributed this to the methodology of Energy Development Oman (EDO) for collecting oil revenue and managing cash flow.

In contrast, net gas revenue dropped by 15% to RO1.213bn this year compared to RO1.434bn collected during the same period in 2023, due to a change in the methodology for collecting gas revenue.

Furthermore, the government’s current revenue decreased to RO2.230bn for the first eight months of 2024, down by RO104mn compared to RO2.334bn registered during the same period in 2023.

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