Oman's public revenues decline 7% in Q1 amid low oil income

28/05/2025 02:30 AST

Oman's public revenues declined by 7% to RO2.635bn during the first quarter of this year, compared to RO2.826bn recorded during the same period in 2024. This decline was primarily due to a substantial drop in oil revenues in the January-March period of this year compared to the corresponding period last year.

According to the Financial Performance Bulletin issued by the Ministry of Finance on Tuesday, net oil revenues in Q1 2025 fell by 13%, amounting to approximately RO1.468bn, compared to RO1.688bn during the first quarter of 2024.

Net gas revenues also declined by 2% by the end of Q1 2025, recording approximately RO436mn, compared to RO444mn in the same period of 2024.

However, current revenues collected during Q1 2025 rose by approximately RO34mn, reaching around RO725mn, up from RO691mn collected during the same period in 2024.

Public spending rises 4%
Public expenditure in the first quarter of 2025 amounted to approximately RO2.771bn, an increase of RO107mn, or 4%, compared to actual spending in the same period of 2024. This rise is attributed to higher development expenditure, according to the ministry's bulletin.

Of total public spending, current expenditure decreased slightly by around RO11mn, recording approximately RO1.967bn, down from RO1.978bn in Q1 2024.

Development expenditure by ministries and civil service units reached approximately RO254mn, representing a disbursement rate of 28% of the total development allocation for 2025, which stands at RO900mn.

Total contributions and other expenditures increased by approximately RO4mn to reach RO490mn, compared to RO486mn in the same period of 2024. Support for the social protection system and petroleum products amounted to approximately RO144mn and RO27mn, respectively, during Q1 2025.

Transfers to the item allocated for debt repayment totalled around RO100mn. Expenditure on social and basic sectors during the first quarter amounted to approximately RO1.668bn.

During Q1 2025, the Ministry of Finance had paid over RO304mn in receivables to the private sector, processed through the financial system with full documentation. This reflects the ministry's commitment to settling private sector dues within an average of five working days, provided the full documentary cycle is completed.

The government also managed a number of financial obligations falling due in Q1 2025. The public debt stood at approximately RO14.3bn by the end of the first quarter of 2025, down from around RO15.1bn at the end of the same period in 2024.

Trade Arabia