Oman’s public debt amounted as of the end of March to OMR15.1 billion ($39.23 billion), showing a slight decrease from OMR15.3 billion ($39.75 billion) at the end of 2023.
The Ministry of Finance disbursed over OMR206 million in dues to the private sector through the financial system in the first quarter of this year, according to the Oman News Agency (ONA).
The recent developments in the public debt sector have been positive, as reported by the ONA. This is primarily due to the government’s continued efforts to streamline spending, diversify revenue sources, and allocate additional revenues towards debt repayment.
Measures such as repurchasing sovereign bonds, settling high-cost loans, and issuing local sukuk and bonds for trading on the Muscat Stock Exchange have contributed to an improvement in Oman’s credit rating and future outlook, according to the ONA.
International credit rating agencies have also praised the government’s actions in managing financial obligations and reducing the size of public debt.
Read more: Oman forges industrial economic alliances with Saudi Arabia, Japan, and U.S.
However, the Ministry of Finance’s financial performance data for the first quarter indicates a 12 percent decrease in the state’s public revenues, primarily driven by a reduction in net oil and gas revenues.
Revenues amounted to approximately OMR2.8 billion ($7.27 billion) by the end of March, down from OMR3.2 billion ($8.31 billion) in the same period in 2023.
Net oil revenues experienced a marginal 1 percent decrease, totaling OMR1.6 billion compared to OMR1.7 billion in the first quarter of the previous year.
Net gas revenues, on the other hand, saw a significant decline of 38 percent, amounting to OMR444 million, down from OMR720 million during the corresponding period in 2023.
Public spending until the end of the first quarter of 2024 reached OMR2.6 billion, reflecting a decrease of OMR103 million or 4 percent compared to the actual spending in the same period of the previous year.
Similarly, current expenditures of civil ministries totaled approximately OMR1.97 billion, a decrease of OMR49 million compared to the first quarter of 2023.
Total contributions and other expenditures amounted to OMR486 million, marking a 78 percent increase compared to OMR273 million during the same period last year. This increase is primarily attributed to the social protection system, with support for petroleum products amounting to OMR72 million and OMR140 million, respectively.
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