Oman has welcomed the International Monetary Fund (IMF)’s report forecasting government debt to decline to around 47 percent of the GDP in 2026.
Fiscal consolidation and higher oil prices are projected to narrow the current account deficit to 0.6 percent in 2026.
Executive Directors commended the Omani authorities’ swift and well-coordinated policy actions to address the health and economic effects of the COVID-19 pandemic.
They underscored providing additional time-bound and targeted policy measures for hard-hit sectors and households if needed.
Oman’s economy is set to recover in 2021, with non-hydrocarbon GDP growth of 1.5 percent, said the IMF.
In the same context, the Ministry of Finance issued the State Budget’s closing account, and it shows that actual revenues received during 2020 stood at OMR8.5 billion ($22 billion), less by OMR2.1 billion or 20.5 percent short of the approved budget.
The Ministry said that this decline is due to a 24.7 percent slump in oil and gas revenues i.e. OMR1.902 billion ($5.7 billion), being the difference between the actual average oil price of $47.6 per barrel and the approved price of $58 set for the 2020 Budget.
The actual average oil price achieved in 2020 was $47.6 per barrel, down by $10.4, from the price approved for the budget ($58) as against the $65.24 average oil price achieved during 2019.
The actual rate of oil production stood at 952,700 barrels per day, compared to 970,000 approved for the budget, less by 1.8 percent.
Actual oil revenues during 2020 stood at 5.7 billion Omani riyal ($15 billion), down by 1.9 billion from approved budget estimates, or less by 24.7 percent due to the slump in international oil prices.
The actual net oil revenues in 2020 stood at about 3.9 billion Omani riyals ($10 billion), compared to 6.09 billion Omani riyals in 2019, down by OMR2.1 billion after transfers to the Oil Reserves Fund.
