Oman's budget surplus hits $2.2bn

30/12/2011 07:38 AST

Oman booked a budget surplus of 830.1 million rials ($2.2 billion) in the first 10 months of 2011 as high oil prices pushed revenues far above projections, finance ministry data showed yesterday.

The surplus is equivalent to about 3.7 per cent of the sultanate's 2010 nominal gross domestic product (GDP).

Analysts expected Oman to post a fiscal surplus of 6.7pc of GDP in 2011 thanks to robust crude prices. These have helped to offset a 12pc rise in spending compared to the initial budget projection for this year, as Oman boosted social spending to head off political unrest.

Oman's budget income jumped by nearly 45pc to 9.311bn rials in January-October compared to the same period last year. It is already 28pc above the initial full-year projection, the data showed.

Net oil revenues surged 61pc to 7.152bn rials. Oman sold its oil at an average price of $102.4 per barrel, up from $76.4 in the first 10 months of 2010, the data showed.

Government expenditures soared to 6.959bn rials in January-October from 5.835bn a year ago. Actual expenditures under settlement, which are funds already allocated but not yet disbursed, stood at 1.522bn rials at the end of October.

Oman, which obtained pledges in March of $10bn in aid over 10 years from its neighbours, originally forecast a budget deficit of 850m rials for 2011, based on a projected oil price of $58 per barrel.

It plans expenditures of 10bn rials and revenues of 8.8bn in 2012, based on an average oil price of $75 per barrel, with the forecast deficit amounting to 5.4pc of GDP.

Gulf Daily News