In 2023, the State’s actual general revenue saw a significant increase of 25 percent, reaching OMR12.542 billion compared to the budgeted amount of OMR10.05 billion. This rise was primarily attributed to an increase in both hydrocarbon and non-hydrocarbon revenues. Oil revenue specifically saw a 34 percent increase compared to the approved budget, making up 72 percent of total public revenue by the end of the year. Net oil revenue amounted to OMR7.150 billion, a significant increase from the budget estimate of OMR5.320 billion. This increase was due to the rise in average oil prices in international markets, which reached $82 per barrel compared to the approved budget price of $55 per barrel. Net gas revenue also saw a significant increase, reaching OMR1.868 billion by the end of 2023, up 33 percent from the budget estimate of OMR1.4 billion.
Non-oil revenue also showed positive growth, reaching a total of OMR3.524 billion by the end of 2023, representing a 6 percent increase compared to the approved budget. This revenue constituted 28 percent of the total public revenue for the year. The increase in non-oil revenue was attributed to the growth in revenue from companies’ income tax and the Value-Added Tax (VAT). Current revenue in 2023 saw a 7 percent rise to OMR3.5 billion, contributing to a total revenue increase from taxes and fees of 10 percent, reaching OMR2.054 billion by the end of 2023. This increase was mainly due to higher revenues from income tax on companies (up 36 percent), VAT (up 12 percent), and the overall recovery of economic activity. Non-tax revenue also experienced a 3 percent increase to reach OMR1.446 billion, up from the budget estimate of OMR1.401 billion, driven by dividends from government investments, revenues from airports and ports, and various other sources of income.
On the expenditure side, actual spending for 2023 slightly increased by 2 percent to OMR11.606 billion compared to the budgeted amount of OMR11.350 billion. This increase was primarily due to an uptick in social spending, support for economic growth initiatives, subsidies for hydrocarbon products, and increased spending on development projects. However, current expenditure saw a 1 percent decrease to OMR8.554 billion compared to the budgeted amount of OMR8.620 billion. Defense and security expenditure also decreased by OMR106 million, while civil ministries saw a 4 percent increase in spending to reach OMR4.616 billion. Development project expenditure for ministries and civil units increased by 24 percent to OMR1.363 billion, primarily due to a boost in allocated financial resources for development projects and payment of dues to private companies involved in these projects. Contributions and other expenses also rose by 4 percent to reach OMR1.689 billion, with a significant portion going towards hydrocarbon product subsidies in line with Royal orders to regulate fuel prices.
In terms of debt management, the Ministry of Finance utilized an additional revenue of OMR936 million towards liability management and public debt reduction, social spending, and economic stimulus. This contributed to strengthening Oman’s financial and economic ratings, as well as its credit ratings and financial position. Total public debt by the end of 2023 stood at OMR15.3 billion, marking a decrease of OMR2.3 billion compared to the previous year. These financial indicators reflect the government’s efforts towards sound fiscal management and economic stability amidst challenging global economic conditions.
