Budget surplus to help pay down debt, spending on development projects

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Additional revenue to be used for development projects, including roads and schools

Muscat – After starting the 2022 financial year with a promising economic outlook supported by revenues from rising oil prices, Oman recorded a budget surplus of RO 18 million at the end of January 2022.

The price of oil from Oman (May 2022 delivery) peaked Thursday at $115.70, up $3 from Wednesday. If oil prices stay at these levels for the rest of the year, it will result in a large budget surplus that will help the country pay down its debt while embarking on new development projects as the budget of the State 2022 was based on $50 per barrel.

During his meeting with the sheikhs of North Batinah, Dhahirah and Buraimi governorates in Bait Bahjat al Andhar last week, His Majesty Sultan Haitham bin Tarik said: “Any surplus resulting from the high oil revenues will be used as much as possible to settle the problem. the country’s debt while looking at development spending.

He also said building basic facilities such as new schools, maintaining what is currently in place and expanding roads and hospitals will be prioritized in increasing spending beyond the plan. five-year approved.

“The state’s development plans are progressing as planned and are in the interest of the country and the citizens. The government has always worked to serve the interests of the citizens,” said His Majesty the Sultan.

According to the Ministry of Finance’s monthly bulletin on the country’s fiscal performance, government revenue grew by an unprecedented 85.2% to RO803.3 million at the end of January 2022, compared to revenue of RO433.7 million. of RO for the corresponding period of 2021.

Rising government revenue contributed to the increase in oil and gas export earnings, as oil export earnings soared 94.42% to RO553.9 million in January 2022, compared to RO284.9 million in January 2021.

On the development side, Her Majesty said that North Batinah has become a governorate with high economic potential. “An economic zone will be established in the region of Al Rawdah in Buraimi. In the coming days, a number of officials will visit the area to determine the land on which the area will be built,” he said.

Among the new health facilities, Suwaiq Hospital is under development while Sohar Hospital is ready. Other hospitals are under construction or nearing completion.

Based on Her Majesty’s Royal Directives, the Ministry of Finance has announced other projects, which will be implemented alongside other projects of the Tenth Five-Year Plan (2021-2025). These include several new hospitals, the construction of 76 public schools in different governorates, compensation for people displaced by the Al Batinah coastal road and the first phase of Khasab airport.

Projects in the transport sector include the development of a road linking Daba-Lima-Khasab and a link to Kumzar in Musandam, the dualization of the Al Ansab-Al Jefnain road (phase 2), phase 1 of the Al Batinah, renovation of roads linking Sahwa roundabout and Mawalih intersections, and extension of Muscat highway.

Projects in the tourism sector include waterfront development at Al Dahariz beach in Dhofar, waterfront development in Al Ashkhara niyabat, tourism facilities in Wadi Bani Khalid wilayat, wadi protection systems in Dhofar and the development of stormwater drainage systems in Muscat Governorate. .

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