Muscat: Oman’s public revenue experienced a slight decrease of 2% during the second quarter of 2024, totaling OMR 6.19 billion. This figure is down from OMR 6.34 billion recorded in the same period of the previous year. The decline is primarily attributed to reduced net gas revenue and lower current revenue.
The Ministry of Finance’s (MOF) fiscal performance bulletin reveals a contrasting trend in net oil revenue, which saw an increase of 3% to reach OMR 3.36 billion in Q2 2024. This is an improvement from the OMR 3.25 billion recorded in Q2 2023. The average price of oil was $82 per barrel, with production averaging one million barrels per day (bpd). The improved performance is credited to Energy Development Oman’s (EDO) effective oil revenue collection and cash flow management strategies.
Conversely, net gas revenue for Q2 2024 fell to OMR 943 million, marking a 15% decrease from OMR 1.11 billion in Q2 2023. This drop is attributed to changes in the gas revenue collection methodology.
Current revenue for Q2 2024 amounted to OMR 1.88 billion, a decline of OMR 80 million compared to the OMR 1.96 billion reported in Q2 2023.
Public spending saw an increase in Q2 2024, reaching OMR 5.80 billion, which is OMR 120 million more than the previous year, reflecting a 2% rise.
The MOF report highlights that current expenditure by civil ministries was approximately OMR 4.06 billion at the end of Q2 2024, a slight decrease of OMR 13 million from OMR 4.07 billion in Q2 2023.
Development expenditure for civil ministries and units reached OMR 502 million, representing 56% of the total development spending planned for 2024.
Contributions and other expenses saw a significant increase, totaling OMR 1.08 billion by the end of Q2 2024, up 40% from OMR 775 million in the same period last year. This increase is largely due to the implementation of the social protection system.
Subsidies related to the social protection system, electricity, and oil products amounted to OMR 280 million, OMR 259 million, and OMR 153 million, respectively. Additionally, OMR 200 million was allocated for future debt obligations.
By the end of Q2 2024, the Ministry of Finance disbursed over OMR 558 million to the private sector, reflecting payments completed through the e-financial system.
Furthermore, during Q2 2024, the government repaid several outstanding financial obligations, reducing public debt to OMR 14.4 billion, a decrease from OMR 16.3 billion recorded at the end of Q2 2023.
