Oman’s budget deficit quadruples to $829mn in September

By bne IntelliNews November 6, 2014

Oman’s state budget gap widened almost four-fold to OMR320mn ($829mn) in September from OMR81mn the month before on soaring spending, the statistics office said. The positive news, however,  is that the cumulative state budget remained in positive territory in January-September, recording a OMR136.1mn surplus despite narrowing from OMR340mn surplus the year before.

Total revenue fell 0.2% y/y to OMR10.46bn at end-September, mainly on lower hydrocarbons proceeds that were partially offset by higher non-hydrocarbons income.

Spending, however, climbed 15% y/y to OMR9.33bn in January-September on surging current expenditure as the government upped wages and compensations. Capital spending also increased over the period but at a milder pace amid government austerity measures. But spending on the military and other public sector civil enterprises remain the main burden on the budget.

The “Actual expenditures under settlement” under the finance ministry’s methodology halved to OMR1bn at end-September.

NOTE: Oman’s finance ministry is using the terminology “Actual expenditures under settlement” which sum is deducted from the total, or gross, budget surplus.

Oil income fell 1.2% y/y to OMR7.8bn while gas proceeds dropped 4.1% y/y to OMR1.05bn. Corporate income tax climbed 12.3% y/y to OMR407mn while customs duties rose 12.1% to OMR156mn.

Current spending jumped 23.2% y/y to OMR5.93bn in January-September split between OMR2.6bn (up 17.1% y/y) on the defence and national security and OMR2.97bn (up 31.1% y/y) on the civil ministries.

Capital spending grew 8.8% y/y to OMR2.2bn at end-September.

Oman’s state budget recorded a OMR267.4mn surplus in 2013, according to final finance ministry data. Total revenue reached OMR14.22bn and spending stood at OMR13.94bn.

Related Articles

EBRD prepares to welcome Lebanon into fold

The EBRD is set to welcome its 66th member country and the fifth from the southern and eastern Mediterranean (SEMED) region once the Lebanese government finalises the last steps of the joining ... more

Russia and Saudi Arabia to launch joint projects worth $3bn in 2017

Russia and Saudi Arabia will launch joint projects worth $3bn by the end of 2017, the speaker of Russia’s Federation Council Valentina Matviyenko said at talks with members of the Russian-Saudi ... more

Egypt’s President El Sisi to announce state of emergency after church bombings

Egypt’s President Abdel-Fattah El Sisi announced in a televised speech his intention to impose a nationwide state of emergency for three months following two deadly bomb attacks on Christian ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss