Muscat: The State's actual general revenue in 2023 experienced a significant increase of 25 percent, reaching OMR12.542 billion. This surpassed the budgeted amount of OMR10.05 billion, as stated in the Final Account 2023 bulletin released by the Ministry of Finance.
This rise can be attributed to the growth in both hydrocarbon and non-hydrocarbon revenues.
The revenue from oil witnessed a remarkable surge of 34 percent compared to the approved budget, constituting 72 percent of the total public revenue by the end of 2023. The net oil revenue amounted to OMR7.150 billion, surpassing the budget estimate of OMR5.320 billion for 2023.
This increase can be attributed to the rise in average oil prices in the international markets, reaching $82 per barrel. This is significantly higher than the approved barrel price in the 2023 budget, which was set at $55 per barrel.
Furthermore, the net gas revenue at the end of 2023 reached OMR1.868 billion, marking a 33 percent increase compared to the budget estimate of OMR1.4 billion.
In addition to the hydrocarbon revenues, the total non-oil revenue by the end of 2023 amounted to OMR3.524 billion. This represents a growth of OMR194 million (6 percent) compared to the approved budget. Non-oil revenue accounted for 28 percent of the total public revenue in 2023. This increase can be attributed to the rise in companies' income tax and the Value-Added Tax (VAT) revenue.
Moreover, the current revenue in 2023 reached OMR3.5 billion, reflecting a 7 percent increase from the total current revenue in the Budget 2023, which was OMR3.280 billion.
The total revenue from taxes and fees at the end of 2023 saw a 10 percent increase, reaching OMR2.054 billion, surpassing the budget estimate of OMR1.869 billion. This growth was primarily driven by a surge in income-tax on companies (up by 36 percent), VAT (up by 12 percent), and the recovery of economic activity.
Non-tax revenue in 2023 experienced a 3 percent increase, totaling OMR1.446 billion, compared to the budget estimate of OMR1.401 billion. This uptick was fueled by higher dividends from government investments, revenues from airports and ports, and miscellaneous revenues. Actual expenditure by the end of 2023 slightly rose by 2 percent, reaching OMR11.606 billion, exceeding the budget estimate of OMR11.350 billion. This was due to increased social spending, support for economic growth stimulus, enhanced subsidies for hydrocarbon products, and higher spending on development projects.
Moreover, current expenditure decreased by 1 percent, amounting to OMR8.554 billion, compared to the budgeted amount of OMR8.620 billion.
Actual defense and security expenditure stood at OMR2.894 billion, showing a decrease of OMR106 million compared to the budgeted amount.
The actual spending of civil ministries in 2023 increased by 4 percent, reaching OMR4.616 billion, surpassing the budgeted amount of OMR4.420 billion. This rise was due to increased expenditure in certain sectors.
The total expenditure on development projects of ministries and civil units surged by 24 percent, reaching OMR1.363 billion compared to the budgeted amount. This increase was driven by higher financial allocations for development budgets of government units and governorates in 2023, as well as payments to private companies that executed development projects.
In 2023, the Ministry of Finance disbursed a substantial amount of OMR1.4 billion to the private sector using the e-financial system. This investment aimed to support and strengthen the private sector's growth and development.
Furthermore, the government effectively utilized an additional revenue of OMR936 million generated in 2023. This revenue was allocated towards various important initiatives, including liability management exercises, reducing public debt, boosting social spending, and stimulating economic growth. These measures not only contributed to the financial and economic stability of Oman but also improved its credit ratings and overall financial position.
Additionally, it is worth noting that the total public debt by the end of 2023 decreased by OMR2.3 billion compared to the previous year, amounting to OMR15.3 billion. This reduction in public debt signifies the government's commitment to fiscal responsibility and prudent financial management.
