MUSCAT: Oman recorded a 2 per cent rise in public spending by the end of the third quarter of 2025 despite an 8 per cent drop in state revenues, according to the Ministry of Finance’s latest Financial Performance Bulletin. Total revenues reached RO 8.481 billion, down from RO 9.198 billion a year earlier, largely due to weaker oil earnings.
Net oil revenues slipped by 13 per cent to RO 4.710 billion, compared with RO 5.436 billion in the same period of 2024. The ministry attributed this to lower crude prices and reduced production levels. Gas revenues also fell slightly by 4 per cent to RO 1.296 billion, reflecting the collection methodology applied by the Integrated Gas Company.
In contrast, current revenues increased by RO 50 million, reaching RO 2.449 billion compared with RO 2.399 billion last year.
Government spending rose to RO 8.914 billion, driven primarily by a sharp 31 per cent increase in development expenditure, which climbed by RO 263 million year-on-year. Current expenditures also rose modestly by RO 75 million to RO 6.227 billion.
Development spending by ministries and civil units reached RO 1.103 billion, surpassing the 2025 allocation ceiling by 23 per cent. This overrun stems from the accelerated pace of work on ongoing infrastructure and development projects. Meanwhile, contributions and other expenses fell to RO 1.583 billion, down RO 148 million from the previous year.
Key subsidy commitments included RO 378 million for the electricity sector, RO 424 million for the social protection system and RO 55 million for petroleum product support. An additional RO 300 million was set aside for debt repayments.
Spending on social and basic services totalled RO 3.817 billion. Of this, 37 per cent went to education, 26 per cent to health, another 26 per cent to social security and welfare and 11 per cent to housing-related programmes.
The Ministry of Finance also confirmed disbursements of RO 1.225 billion in payments to private-sector entities, maintaining its policy of settling invoices with complete documentation within an average of five working days.
Oman’s public debt stood at RO 14.7 billion at the end of the third quarter, compared with RO 14.4 billion in the same period of 2024. The increase is linked to the refinancing of maturing domestic debt instruments and proactive management of obligations due later in the year. The government continues to build the local debt market by issuing sovereign sukuk and development bonds as part of efforts to strengthen the national yield curve. — ONA
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