Oman’s government expenditure for the first seven months of 2017 declined 2.7 per cent to OMR6,486.9 million, from OMR6,663.8 million in the same period of last year.
The gross revenue by the end of July 2017 recorded an increase of 25.7 per cent to touch OMR4,701.5 million, compared with OMR3,740.5 million during the same period last year.
Initial data issued by the National Centre for Statistics and Information (NCSI) said the budget deficit by the end of July 2017 stood at OMR2,585.4 million; reflecting a decline of 35.7 per cent, compared with July 2016, which stood at OMR4,023.3 million.
Of the total financing means used by the Sultanate, which stood at OMR4,905.5 million as of the end of July 2017, net borrowing stood at OMR4,105.5 million. The new local borrowing stood at OMR300 million and the finance from reserves stood at OMR500 million.
The increase in the state’s public revenues as of the end of July 2017 is attributed to an increase in oil revenues of 43 per cent to hit OMR2,564.7 million, up from OMR1,794.1 million.
Gas revenues surged 6.9 per cent to hit OMR832.6 million, compared with OMR778.9 million as of the end of July 2016.
Capital revenues increased by 9.7 per cent to hit OMR10.2 million, from OMR9.3 million by the end of July 2016.
On the other hand, the tax and custom revenues decreased by 35.9 per cent to OMR117.4 million, down from OMR183.1 million by the end of July 2016.
Corporate income tax fell by 7.3 per cent to OMR307.4 million, compared with OMR331.5 million. Other revenues grew by 35.1 per cent to stay at OMR869.2 million, compared with OMR643.6 million by the end of July 2016.
Current expenditure dominated the total expenditure as of the end of July 2017 at OMR4,529.5 million; showing a decline of 0.8 per cent, compared with the end of July 2016, when it stood at OMR4,566.7 million.
Defence and security expenses decreased by 0.1 per cent to hit OMR1,901.7 million. The civil ministries expenses decreased by 4 per cent to hit OMR2,194.6 million. The interests on loans have been the highest in terms of growth, compared with other items of the current expenditure at the public expenditure as it increased by 185.8 per cent to hit OMR125.2 million.
While oil production expenses slipping 14.7 per cent to stay at OMR188.9 million, gas production expenses increased by 6.4 per cent to hit OMR119.1 million.
The investment expenditure decreased by 4 per cent to record OMR1,614.9 million.
The development and capital expenditure for the civil ministries decreased by 11.9 per cent and 55.3 per cent, respectively, to register OMR847.4 million for the development expenses and OMR3.8 million for the capital expenses.
Within the investment expenses, while the oil production expenses decreased by 7.8 per cent to register OMR396.9 million, gas production expenses increased by 30.3 per cent to register OMR366.8 million.
The subsidy and contribution expenses decreased by 17.4 per cent to OMR342.5 million. The actual expenses under settlement stood at OMR800 million.