Budget 2026 projects RO 530m deficit, revenues at RO 11.4bn

Muscat: The Ministry of Finance (MoF) on Thursday unveiled details of the 11th Five-Year Development Plan, marking a new phase in advancing the objectives of Oman Vision 2040.

The plan adopts a financial sustainability approach aimed at maintaining public debt within safe levels, while expanding non-oil revenue sources. It also focuses on promoting social development, environmental sustainability, governance and institutional efficiency, economic decentralisation across the governorates, and enhancing labour market efficiency and employment opportunities.

The ministry stated that the plan will be implemented through a flexible mechanism comprising three work programmes. The first programme will cover the period from 2026 to 2027, followed by a second programme from 2028 to 2029, and a complementary programme in 2030.

The Eleventh Five-Year Development Plan targets economic growth of around 4 per cent at fixed prices over the plan period.

The estimated revenues of the State’s General Budget for 2026, based on an average oil price of $60 per barrel, are projected at around RO 11.447 billion, representing an increase of 2.4 per cent compared to the revenues approved for 2025.

Total public expenditure for 2026 is estimated at approximately RO 11.977 billion, up 1.5 per cent from the spending levels approved in the 2025 budget.

The budget deficit for 2026 is projected at about RO 530 million, marking a decline of 14.5 per cent from the deficit approved for 2025. This deficit represents 4.6 per cent of total revenues and 1.3 per cent of the gross domestic product.

Meanwhile, the Minister of Finance stated that the State’s General Budget recorded additional revenues amounting to RO 11.291 billion during the Tenth Five-Year Plan (2021–2025), attributed to improved oil prices.

The minister added that the total approved amounts for all governorates until the end of the year 2025 reached RO 983 million.