Public debt reduction to ensure financial and economic stability in Oman

Public debt reduction to ensure financial and economic stability in Oman

The Sultanate attaches great importance to reducing public debt in a way that guarantees financial and economic stability. It is with this end in view that within five years, the Sultanate has paid off nearly OMR5 billion of public debt.

Speaking to Times of Oman, Dr. Mohammad Al-Wardi, an academic and economic analyst, said: “There are some apprehensions on budget deficit and the assumption of $55 per barrel price of oil. I want to clarify that this price is hypothetical and precautionary, in order to avoid any drop in oil prices.”

“The Sultanate paid OMR5 billion as interest on debt alone between 2016 and 2022, out of which OMR1.1 billion was paid during 2022, and another OMR1.2 billion has been allocated for debt servicing in 2023. Therefore, the Sultanate attaches great importance to debt reduction to ensure financial and economic stability,” Dr Al-Wardi said.

He confirmed that spending for 2023 comes to OMR13 billion, which is similar to actual spending for 2022, while revenues have been projected at OMR11.6 billion on the back of a conservative oil price of $55 per barrel to hedge against price fluctuations. Accordingly, the budget deficit will reach OMR1.3 billion, but with the rise in oil prices, the