The 2025 budget in Oman has been prepared with the intent of maintaining financial, economic, and social stability. The government aims to improve public finance indicators, achieve financial sustainability, and continue providing subsidies for essential services such as electricity, water, fuel, and basic food commodities. Estimates for the 2025 budget were developed based on key factors and data, with total public revenues estimated at about OMR11.180 billion, an increase of 1.5 percent from the previous year. Oil revenues constitute 52 percent of the total revenues, while non-oil revenues represent 32 percent, with the budget including an estimated deficit of OMR620 million.
In terms of public spending, the 2025 budget is estimated at OMR11.800 billion, with an increase of approximately OMR150 million from the previous year. Social services receive financial allocations of about OMR5.004 billion, distributed across education, health, housing, and social welfare sectors, showing an increase over the allocations approved in 2024. The budget also includes allocations for various subsidies, including OMR577 million for the Social Protection Scheme, OMR520 million for electricity, and OMR194 million for water and wastewater sectors, among others.
The government in Oman is focused on decentralised development in the governorates, with an allocation of OMR220 million across all governorates during the 10th five-year plan. The Development Bank plays a key role in financing value-added projects, with an approved amount of OMR80 million to raise the bank’s capital for 2025. The bank has seen growth in its loan portfolio, reaching over 22,000 loans by the end of 2024. Additionally, the (Iskan) programme, launched in partnership with Oman Housing Bank, has seen growth in its lending portfolio, indicating positive economic development.
The Sultanate of Oman has shown positive economic indicators in terms of GDP growth, inflation rates, and foreign direct investments (FDI). The GDP is expected to continue growing, while inflation rates have remained low thanks to government policies. FDI in Oman has increased by 16 percent compared to the previous year, showcasing investment confidence in the country. The government’s efforts to streamline procedures and adhere to announced programmes have contributed to this growth and stability.
The 2025 budget aims to maintain basic social services, continue government subsidies, support urban growth, provide housing opportunities, and enhance employment initiatives. It allocates approximately OMR900 million for development expenses, with about OMR2.345 billion for contributions and other expenses. Spending on social and basic sectors constitutes 42 percent of the total public spending, with specific allocations for various sectors like health, education, housing, and social welfare. The budget also includes initiatives to employ jobseekers in the private sector and support sustainable development in governorates.
The Ministry of Finance in Oman is committed to reducing public debt through prudent financial management practices. The government has implemented initiatives to rationalise spending, increase non-oil revenues, and lower the debt-to-GDP ratio. The public debt has decreased by approximately OMR800 million, reaching OMR14.4 billion, with plans to pay off existing loans and issue new bonds to manage the debt effectively. The ministry is also set to implement a unified government financial system called “Maliya” to further enhance financial management and reporting capabilities in line with Oman Vision 2040.
