Azlan Othman
The proposed budget for financial year 2022-2023 is BND5.7 billion, said Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah on the third day of the 18th Legislative Council (LegCo) session yesterday.
The budget for financial year 2021-2022 was BND5.86 billion, similar to the previous year.
The minister said government revenue is projected to be BND3.17 billion where BND2.25 billion will be from the oil and gas sector and BND923 million from other sectors.
Revenue includes tax totalling BND314.6 million; BND311.36 from fees, charges and rental; BND236.28 million from return on investment and savings; and BND40.49 million from excess revenue from statutory bodies.
Expenditure totals BND5.7 billion with BND2.15 billion for staff salaries; recurring expenditure of BND2.14 billion; BND350 million for National Development Plan (RKN) projects.
With these estimates, the government will have a budget deficit of BND2.53 billion. The deficit projections will be revised from time to time, based on the Sultanate’s oil and gas production levels, world oil prices, United States dollar exchange rate and revenue from the non-oil and
gas sector.
The updated government fiscal position for financial year 2021/2022, following the increase in world oil prices to over USD90 per barrel, is BND4.15 billion.
Meanwhile, government expenditure for financial year 2021/2022 has increased to BND5.67 billion, compared to the previous BND5.29 billion.
The increase is largely due to spending following the second wave of the COVID-19 pandemic since August 2021. As of February 24, 2022, BND138.5 million had been spent, due to increasing laboratory testing capacity to 8,000 tests a day; allowance for frontliners; purchase of vaccines; setting up isolation facilities; implementation of a vaccine management system; upgrade of BruHealth; food supply for individuals undergoing isolation; and the purchase of antigen rapid test (ART) kits.
With these estimates, the government recorded a budget deficit of BND1.52 billion in financial year 2021/2022, compared to BND3.24 billion in the previous year.
Government revenue collection for financial year 2020/2021 fell 57.7 per cent from BND4.85 billion to BND2.05 billion while expenditure decreased 9.9 per cent from BND5.87 billion to BND5.29 billion. With this, the deficit for financial year 2020/2021 was BND3.24 billion, highest since financial year 2014/2015, as a result of low global oil prices and reduced domestic oil and gas production due to delays, unscheduled deferments and oil well maintenance.
