Oman: Budget surplus of $545m on higher oil prices, tax

Oman posted a budget surplus of $545m in the first two months of this year, helped by higher oil prices and tax collection.

The surplus compared with a deficit of OMR457 million a year ago. Net oil revenue jumped 81 per cent to OMR1.1 billion at the end of February.

Oman, which needs oil at about $61 a barrel to balance its books, has implemented a series of reforms to bridge the budget gap and lower its debt, including the introduction of a 5 per cent value-added tax last year. In January, the finance ministry projected a budget deficit of $3.9bn for this year, based on oil prices at $50 a barrel.

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