Oman has approved its 2022 budget, unveiling an expected $4bn deficit for the year. The Ministry of Finance also announced preliminary figures for 2021, showing that the sultanate’s deficit shrank to a seven-year low of $3.2bn.

The key driver of the improvement between 2020’s $11.5bn deficit and last year’s much reduced shortfall was the surge in oil and gas revenues from $15.1bn to $21.3bn. The average price for Omani oil increased from $47.6/B to $61.0/B over the same period. With oil and gas accounting for nearly 75% of government revenues in 2021, the sultanate’s fiscal performance is largely dependent on oil prices. (CONTINUED - 730 WORDS)