Budget surplus helps cut public debt: Oman

Budget surplus helps cut public debt: Oman

In line with the efforts made by the government, Oman's public debt reduced to RO 18.6 billion at the end of the first half against RO 20.8 billion during the corresponding period last year.

The debt is further projected to decrease to RO 17.5 billion towards the end of the year bringing the debt to GDP ratio to 47.5 per cent in 2022, down from 67.3 per cent last year.

This is revealed in the latest edition of Fitch Solutions, the affiliate of the rating agency, which expects Oman’s 12-month fiscal surplus to stand at 6.5 per cent of its total gross domestic product this year.

On June 30 last, Oman completed a voluntary debt buyback transaction totalling $701 million across Eurobonds maturing in 2025, 2026, 2027, 2028, 2029, 2031, and 2032.

Following several years of falling public finances and external accounts until 2020, the Sultanate of Oman is now benefiting from higher oil prices and fiscal and governance reforms.

Oman crude oil prices have averaged around $95 per barrel so far this year, compared to $61 per barrel over 2021.

Oman’s expenditure growth is expected to moderate in the second half, in line with fiscal consolidation efforts.

Revenue, the report said, will rise further in the