Oman’s Public Debt Sees Slight Decrease to $39.23 Billion
In a recent report by the Oman News Agency, it was revealed that Oman’s public debt stood at 15.1 billion Omani rials ($39.23 billion) by the end of March, showing a slight decrease from 15.3 billion rials at the close of 2023.
Government Measures Lead to Positive Developments in Public Debt Domain
The Ministry of Finance disbursed over 206 million rials in dues to the private sector through the financial system during the first quarter of the year, indicating positive developments in the public debt domain. The government’s continued efforts to rationalize spending, diversify revenue sources, and direct additional revenues towards debt repayment have contributed to an improvement in Oman’s credit rating and future outlook.
International Credit Rating Agencies Praise Oman’s Financial Management
International credit rating agencies have commended Oman’s efforts in managing financial obligations and reducing the size of public debt. The government’s initiatives, such as repurchasing sovereign bonds, settling high-cost loans, and issuing local sukuk and bonds for trading on the Muscat Stock Exchange, have been recognized for their positive impact.
Challenges Faced by Ministry of Finance
Despite the positive developments, the Ministry of Finance reported a 12 percent decrease in the state’s public revenues during the first quarter. This decrease was primarily attributed to reductions in net oil and gas revenues, with net gas revenues experiencing a significant 38 percent decline.
Public Spending and Expenditures
Public spending until the end of the first quarter of 2024 amounted to 2.6 billion rials, reflecting a decrease compared to the previous year. Current expenditures of civil ministries also saw a decrease, while total contributions and other expenditures increased, mainly due to the social protection system.