Oman’s public revenue stood at OMR 1.92bn ($4.98bn) and net oil revenues at OMR 1.1bn ($2.9bn) at the end of February 2022, up by 76% and 81% YoY respectively. Its revenue and budget surplus surged from oil prices shooting up and a higher tax collection. For the first two months, the budget surplus was at $545mn compared to a deficit of $1.2bn in 2021 during the same period. Oman has implemented many reforms to fill the deficit and lower its debt, and introduced a 5% value-added tax (VAT) in the previous year. Oman needs crude oil at $61/bbl to balance its books it said. In January 2022, the finance ministry projected a budget deficit of $3.9bn assuming crude at $50/bbl. Oil prices averaged $81/bbl during January and February, almost double the $42/bbl average recorded a year ago. Oil prices increased significantly on Russia-Ukraine Crisis, and hence these price gains will be used to trim debt and spending on projects. Earlier this week, S&P upgraded Oman by one notch to BB-.
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