Top priority to human resources

The percentage of oil and gas revenues from total revenues of the country represent 81.8 per cent, an increase of 22.5 per cent on an annual basis.

The government is constantly relying on oil and gas sectors as an essential provider of revenue which explains the government spending on development of various sectors.

Accordingly, net oil revenues reached RO 6.1 billion, gas revenues amounted to RO 1.1 billion — an increase of 23 per cent and 19.6 per cent respectively from the estimated values in 2011, to reach RO 7.2 billion which is an annual increase of 22.5 per cent from those estimated during the previous year.

The contribution income of gas to the total revenues stabilised at the levels in 2011 which is 12 per cent.

The percentage of contribution of non-oil revenues to the total revenues amounted to 18.18 per cent with RO 1.6 billion, an increase of 14 per cent on an annual basis in 2012 compared to the estimated value in the previous budget, which include a rate of 98.13 per cent of current revenues.

Among the current revenue an amount of RO 770.5 million (accounting for 49 per cent) are from taxes and fees, including RO 340 million for the income tax imposed on the companies and institu- tions during 2012, and compared with about RO 280 million the size of the effective tax for 2011 according to the announcement of the budget.

It should be noted finally that 46 per cent of the GDP of the Sultanate comes from oil revenues, while 54 per cent comes from non-oil activities according to the latest government statistics, which refers to the keenness of the Sultanate to achieving the future vision “Oman 2020” aiming primarily to diversify sources of income.

According to the announcement of budget, the adoption of additional allocations with RO 1.8 billion in 2011, concentrated mostly in civil and security current expenditure as a result of new jobs, led to a theoretical deficit of RO 2.6 billion , which is expected to be covered from the budget surpluses in 2011 in addition to the issuance of Government Development Bonds.

With respect to expenditures, the first 10 months of 2011 witnessed recording the total actual expenses (including actual expenditures under the settlement) of RO 8.48 billion, an increase by 4.3 per cent of the total costs estimated in the original budget representing 92.25 per cent of the total expenses for the amended budget in 2011.

Development expenditure of civil ministries remarked a growth rate at about 14.1 per cent on an annual basis for up to RO 1.39 billion.