Muscat: The government neither plans to levy income tax on high-income earners in 2023 nor raise value-added tax (VAT) above 5 percent, the finance minister said. Sultan bin Salim al Habsi on Tuesday.
The establishment of the Integrated Natural Gas Company is under consideration, which will work along the lines of Energy Development Oman.
Public expenditure in the 2023 budget rises by 7 percent to RO 12.950 billion with a deficit estimated at RO 1.3 billion which constitutes 11 percent of revenue and 3 percent of GDP.
Al Habsi said that global economic and geopolitical developments were taken into account when drafting the General Government Budget 2023. He noted that Oman used the gains in oil prices to reduce public debt. As a result, the public debt decreased from 70 percent in 2020 to 43 percent in 2022, according to his explanation.
The government will start implementing programs on financial stability and the development of the financial sector by creating initiatives and projects, Al Habsi confirmed. He added that these activities and programs will be carried out in collaboration with the Central Bank of Oman (CBO) and the Capital Markets Authority (CMA) to strengthen the role of the banking sector in financing. and investment — which will fulfill the objectives of the National Program. for achieving financial balance.
The minister pointed out that Oman managed to keep inflation within a safe limit of no more than 3 percent, thanks to several policies designed to curb the impact of the incident.
He said that the total aid in 2022 was 1.6 billion RO.
The state’s general budget for 2023 set the price of oil at 55 dollars a barrel.
The details of the state budget for 2023 were announced to the media, with the participation of many departments, including the Ministry of Economy, the Ministry of Trade, the Industry and Investment Promotion and Oman Investment Authority.
During the speech, Dr Nasser al Maawali, Deputy Secretary, Ministry of Economy, said that the economy has achieved a remarkable growth rate due to economic policies, structural reforms and the increase in oil prices.
The Ministry of Finance said that the total initial revenue for 2023 is about RO 11,650 billion, up 10 percent from the approved budget for 2022.
The average rate of oil production is expected to increase to 1.175 million barrels per day, at an average price of 55 dollars per barrel for Oman crude. Oil prices were set in light of uncertainty facing the global oil market due to supply issues, a slowdown in the Chinese economy due to Covid-19 restrictions, and the possibility of a global recession. .
The government was able to control inflation and provide support for basic services, which was around RO 1.6 billion last year, and will continue to do so next year.
Despite the expected slowdown in global economic growth, the national economy is expected to grow by 5 percent, driven by oil and non-oil activities.
The estimated investment expenditure for 2023 is RO 4.5 billion, of which RO 1.1 billion comes from the budget, RO 1.9 billion comes from investment by the Omani Investment Authority, and RO 1.5 billion comes from by Energy Development Oman (EDO).
Estimates of the state’s general budget until the end of 2022 indicate that the price of oil is expected to reach $ 94, bringing in revenues of RO 14.234 billion and spending RO 13.88 billion, to to record a fiscal surplus of 1.146 billion.
Foreign direct investment in the Sultanate increased to RO 17.9 billion by the end of Q2 2022, benefiting from the initiatives and procedures put in place to attract investment.
The Ministry of Economy said that the total development expenditure from the beginning of the tenth five-year plan (2021-2025) to the end of November 2022 amounted to RO 2.029 billion.
The Ministry of Economy announced that the most prominent new projects in 2023 are the construction of 15 schools in different provinces, the construction of health centers in some wilayats, the implementation of two roads and a few services, parks and dams, and the construction of a fishing port in the Wilayat of Mahout.
The Oman Investment Authority will spend RO 1.9 billion on business in 2023, including the expansion and improvement of existing projects, the completion of projects under construction and the development of new projects.
The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) has announced that 35 new regulations have been issued to improve the business environment during 2020-2022.
MoCIIP said that 802,524 applications have been submitted through the Invest Easy portal and more than 765,324 permits have been automatically issued since the service was launched in April 2021.
The decision to cut public service charges from 17 to 100 percent was made to support the national economy and provide resources.
Foreign direct investment in the Sultanate increased to RO 17.9 billion by the end of the second quarter of 2022, benefiting from initiatives and measures taken to attract investment.
Due to the improvement in oil prices, the economic recovery from the effects of the Covid-19 epidemic and the success of economic activities, the Sultanate’s GDP increased by 30.4 percent in the current price in the first half of 2022 compared to the first half of 2021. .
Dr. Said bin Mohammed al Saqri, the Minister of Economy, said: “Inflation is expected to be around three percent, due to the government’s measures to support prices fuel, basic services and food, and basic food security.”
The strategic program approved as part of the 10th five-year plan is being implemented at a rapid pace and development funding for the year 2022 has been earmarked for the Musandam Gas Plant, construction a passenger terminal at Muscat International Airport and a new hospital, and funding and housing. program.
To enhance Omani economic growth and accelerate approved development projects, funding for ongoing development projects has been increased by 25 percent until November 2022 with a focus on priority projects priorities in the social sector and services.
The development budget for 2023 is RO 5.8 billion, of which RO 5.3 billion is for ongoing projects (with an overall completion rate of 60 percent to 22 November) and RO 500 million for new projects.
The actual investment expenditure during the year 2022 for the public sector is as follows: civil ministry (RO 1.1 billion); Oman Investment Authority (RO 2.2 billion) and Energy Development Oman (RO 1.2 billion).
Infrastructure projects account for the largest share of funding for the 10th five-year plan to November 2022. This includes funding earmarked for development projects for the governor and the Al Batinah Coastal Road project.
Various sectors are on track to achieve the 10th Five Year Plan targets. The first part of the plan witnessed the development of the transport and logistics sector, agriculture and mining.
Indicating the success of the economic consolidation plan, the non-oil economic activities saw growth in the first half of 2022, led by transport and storage and industrial activities, which increased by 26.1 percent and 25.1 percent.
The Ministry of Finance is in the process of restructuring the Oman Development Bank (ODB) so that it can play a greater role in providing financing to the private sector and small and medium enterprises (SMEs).
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