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Oman estimates spending at nearly $34bn in 2023 budget

Oman News Agency
Oman managed to keep inflation below three percent due to a raft of policies

Oman’s 2023 budget estimates revenue at OMR 11.65 billion ($30.34 billion) and expenditure at OMR 12.95 billion, with a forecast budget deficit of OMR 1.3 billion, state-run Oman News Agency reported.

The 2023 budget has been based on an average oil price assumption of $55 per barrel.

Global economic and geopolitical developments were taken into consideration when drafting the general state budget 2023, Minister of Finance Sultan bin Salim Al Habsi said, adding higher oil revenue has helped cut down public debt. As a result, the public debt fell from 70 percent in 2020 to 43 percent in 2022.

Oman managed to keep inflation below three percent due to a raft of policies. However, the total subsidy stood at OMR 1.6 billion this year.

The average oil production rate is likely to rise to 1.175 million barrels per day at an average price of $55 per barrel for Oman crude. Oil prices continue to be extremely volatile, exacerbated by a slowdown in the Chinese economy, and the potential global recession.

Oman’s economy is slated to grow by five percent, driven by oil and non-oil activities

The estimated investment expenditure for 2023 is OMR 4.5 billion, of which OMR 1.1 billion is from the budget, OMR 1.9 billion is from the investments of the Omani Investment Authority, and OMR 1.5 billion is from Energy Development Oman.

Moreover, the minister said there are no plans to introduce income tax in 2023.