DUBAI, May 9 (Reuters) - An increase in net oil revenue
of 9% in the first quarter on higher oil prices and increased
production helped Oman to a budget surplus of 450 million rials
($1.17 billion) in the period, data from the finance ministry
showed on Tuesday.
Net oil revenue at the end of March 31 amounted to 1.71
billion rials, based on an average price of $85 per barrel, from
1.57 billion rials in the same period a year ago, helping lift
total revenue during the period by 6% to 3.22 billion rials.
Spending in the first quarter also increased, up by 4% over
the prior year period, to 2.77 billion rials.
"At the end of Q1-2023, the budget registered a surplus of
450 million rials compared to a surplus of 357 million rials
achieved over the same period in 2022," the latest fiscal
performance report said.
Oman is among the weaker economies of the Gulf oil and gas
exporters but higher oil prices have supported public finances
and helped to reduce government debt.
Last month, the finance ministry said it had repaid 1.1
billion rials in loans in the first quarter bringing total
public debt at the end of March to 16.6 billion rials.
Total debt was 17.7 billion rials at the end of 2022.
However, Gulf economies are expected to grow at a slower
rate in 2023 as a lower oil price outlook and global
macroeconomic worries could weigh on revenue.
The International Monetary Fund projects GDP growth to ease
to 1.7% in 2023 from 4.3% last year, before recovering to 5.2%
in 2024 in its latest regional outlook report released last
week.
Oman's economy remains reliant on revenue from hydrocarbons
despite plans to diversify into sectors such as tourism and
logistics.
($1 = 0.3849 Omani rials)
(Reporting by Rachna Uppal
Editing by Christina Fincher)
