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21-06-12

Oman sees USD3.8b budget surplus in 4 months

(MENAFN) A recent report issued by the Omani Ministry of Economy showed that the Gulf state registered a USD3.8 billion budget surplus during the first third of 2012, driven by higher oil revenues, Reuters reported. The report said that Oman has raised its budget by 23 percent to USD25.8 billion this year compared to its original projection for 2011. Year-on-year, the sultanate marked a 40 percent hike in revenue to USD11.9 billion, or 52 percent of the initial full-year projection, while spending increased by 26 percent from a year earlier, according to the official figures. Oil revenues jumped 35 percent to USD8.5 billion in the period from a year earlier, as Oman sold its oil at an average price of USD109.1 per barrel, up from USD88.4 in the first three months of 2011. The country would still post a surplus in 2012 if oil prices stay at current levels, as the International Monetary Fund (IMF) predicted in December that Oman's budget break-even oil price would be USD81. But that break-even level is expected to rise to USD105 by 2016. The ministry's report also showed that Oman's public finances have improved significantly compared to a year earlier when the government posted a USD295 million deficit for the period. Inflation saw a decline to a two-year low at 3 percent in April from 3.1 percent in March. Prices rose 0.1 percent mainly driven by an increase in transport costs, after a 0.3 percent fall in March.

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