Oman boosted actual spending by nearly 13 per cent in the first quarter of 2013 as the Gulf country appears to be buoyed by strong oil prices and higher output.

From around RO1,382.2 million in the first quarter of 2012, public expenditure grew to nearly 1,563.4 million in the first quarter of 2013, according to data by the Omani Ministry of National Economy.

The increase was in both current spending and investment expenditure which rose by 13.1 and 13.8 per cent respectively, its monthly report showed.

The largest increase was in gas production investment, which leaped by nearly 54 per cent. Oil production investment declined by 9.1 per cent while there was a 13.2 per cent rise in defence and security allocations, 14.8 per cent in allocations for civil ministries and 12.7 per cent in oil production current spending.

Despite higher expenditure, Oman’s budget recorded a relatively high surplus of around RO931 million albeit lower than the 1,121.5 million surplus recorded in the first quarter of 2012, the report showed.

It showed higher oil prices and production boosted Oman’s crude export earnings by around 13.9 per cent to RO 2,714.1 million in the first quarter of 2013 from RO2,382.5 million in the same period of 2012. Gas revenue also rose by 11.3 per cent to about RO370 million from 332.4 million.

The surge in oil income along with an increase in other earnings boosted Oman’s total revenue by 11.8  per cent to RO3,456.7 million from RO3,091.9 million.

An increase in crude prices to their highest annual average in 2012 allowed Oman to record its highest fiscal surplus of RO3,222 million (Dh31 billion) compared with an actual deficit of RO113.2 million (Dh1.09 billion) in 2011.

The surplus last year was mainly a result of a 33.8 per cent increase in oil export earnings to nearly RO10.43 billion from RO7.79 billion due to higher prices and growth in Oman’s oil production to 918,000 bpd from 884,000 bpd.

The price of Oman’s crude rose to an average $109.6 a barrel from $102.9 in the same period and this boosted the country’s total actual revenue by about 31.6 per cent to RO13.98 billion from around RO10.62 billion.

Oman, which controls nearly five billions of proven oil reserves, expects to boost spending in its 2011-2015 development plan by a whopping 113 per cent as it forecasts high oil prices and is pursuing plans to boost crude output.