The 2025 state budget for Oman projects total revenue of approximately OMR 11.18 billion, based on an average oil price of USD 60 per barrel and average production of 1.001 million barrels per day. This represents a 1.5% increase compared to the estimated revenue for 2024. The budget also allocates OMR 1.834 billion for public debt repayment. Preliminary results for 2024 indicate a financial surplus of approximately OMR 540 million, a substantial improvement from the initially projected deficit of OMR 640 million. This positive outcome is attributed to a 15.1% increase in total revenue, reaching OMR 12.674 billion. This increase was driven by higher oil and gas revenues, with net oil revenues rising by 24.3% to OMR 7.353 billion and net gas revenues increasing by 14.3% to approximately OMR 1.8 billion.
Public expenditure for 2024 totaled OMR 12.134 billion. Furthermore, the government successfully reduced public debt from OMR 15.2 billion to OMR 14.4 billion, resulting in OMR 110 million in savings on debt servicing costs. The 2025 budget allocates OMR 8.555 billion for current expenditures, representing 72% of total public expenditure. Projected development and investment spending for 2025, including investments by other government institutions such as the Oman Investment Authority and its subsidiaries, as well as the Oman Energy Development Company, is estimated at approximately OMR 4.44 billion. The allocation for the Governorates Development Program in the 2025 budget stands at OMR 44 million. Additionally, OMR 50 million has been allocated to support employment initiatives for job seekers in the private sector, supplemented by funds collected from a 1.2% levy on oil and gas sector purchase invoices.
Key development projects planned for 2025 include the completion of 20 new government schools and the tendering for the construction of 22 more. The completion of 9 government hospitals is also prioritized, along with the expansion of the Muscat Expressway and the construction of several ports and dams.
In conclusion, Oman’s 2025 state budget reflects a positive financial outlook with projected revenue growth and prudent expenditure allocations. The government’s efforts in reducing public debt and achieving a financial surplus in 2024 have set a solid foundation for sustainable economic development in the coming years. The focus on development projects in key sectors such as education, healthcare, infrastructure, and employment signifies a commitment to long-term growth and prosperity. With continued strategic planning and effective implementation, Oman is well-positioned to achieve its economic goals and enhance the well-being of its citizens.
