The General State Budget for the fiscal year 2025 indicates a 5-per cent increase in general revenues, reaching approximately RO 11.760 billion, compared to the approved revenues in the General State Budget for the fiscal year 2025, which amounted to RO 11.180 billion.
Abdullah bin Salim al Harthy, Under-Secretary of the Ministry of Finance, said that this rise is primarily attributed to a 10-per cent increase in net oil revenues, recording about RO 6.403 billion compared to the budgeted RO 5.830 billion, and a 0.4-per cent increase in net gas revenues, recording about RO 1.784 billion compared to the budgeted RO 1.777 billion.
He said that the preliminary results of the financial performance for 2025 indicated a 4-per cent increase in total public expenditure, recording approximately RO 12.240 billion compared to the approved amount in the General State Budget of RO 11.800 billion. This is mainly due to a rise in development expenditure by about RO 260 million, reaching approximately RO 1.160 billion, resulting from increased developmental spending to accelerate the pace of work on ongoing development projects.
He clarified that when adding projects with developmental impact, the total investment expenditure is expected to reach about RO 1.400 billion. Total contributions and other expenditures also rose by 6 per cent, reaching about RO 2.475 billion compared to the budgeted amount of RO 2.345 billion. This increase is due to enhancing allocations for petroleum products subsidies by about RO 55 million to reach approximately RO 90 million, and increasing support for the electricity, water and sewage sectors by about RO 65 million, bringing the total to approximately RO 779 million.
He noted that social spending was boosted, and economic growth was stimulated by increasing the Ministry of Social Development’s allocations for social security beneficiary families, distressed families and low-income families by about RO 51 million. Additionally, 861 loans for small and medium enterprises from the Development Bank and the Small and Medium Enterprises Development Authority were waived by the end of 2025, amounting to over RO 26 million.
The Under-Secretary of the Ministry of Finance explained that the preliminary results of the financial performance for 2025 indicate a financial deficit of approximately RO 480 million, compared to the estimated deficit in the General State Budget of RO 620 million, reflecting a decrease of about 23 per cent. This improvement is attributed to favourable oil prices. This deficit was covered through borrowing and drawing from reserves.
He stated that in line with the objectives of the General State Budget for the fiscal year 2026, aimed at maintaining financial, economic and social stability, general state revenues were estimated at approximately RO 11.447 billion. This calculation is based on an average oil price of $60 per barrel. Net oil revenues were estimated at about RO 5.752 billion, net gas revenues at about RO 1.961 billion and non-oil revenues at about RO 3.734 billion.
He added that current expenditures in the approved budget for 2026 were estimated at approximately RO 8.771 billion, constituting 73 per cent of total public expenditure. Defence and security expenditures in the approved budget for 2026 were estimated at about RO 3.160 billion, while expenditures for civil ministries were estimated at about RO 4.700 billion.
He pointed out that public debt service expenditure was approved in the 2026 budget at approximately RO 911 million, based on the expected interest payments for existing loans and those planned for repayment in 2026. He explained that the government seeks to implement proactive repayments of its financial obligations, contributing to reducing public debt service and mitigating its risks.
He mentioned that the government has allocated approximately RO 100 million annually for the employment programme during the years of the Eleventh Five-Year Development Plan (2026-2030). This includes 1.2 per cent of the value of contracts and procurements concluded with government units, companies affiliated to Oman Investment Authority, and oil and gas company contracts. This reflects a shared national commitment to reducing the number of job-seekers and enhancing employment stability.
He stated that contributions and other expenditures in the approved budget for 2026 were estimated at about RO 1.906 billion, constituting 16 per cent of total public expenditure. The allocation for supporting the social protection system amounted to approximately RO 614 million, support for the electricity sector reached about RO 509 million and the debt allocation was about RO 300 million.
In the housing sector, he highlighted that the cost of ongoing projects for this sector, expected to be completed during the Eleventh Five-Year Development Plan, amounts to approximately RO 227 million. During this year, the implementation of the first phase of Sultan Haitham City will be completed, and infrastructure works for A’Thuraya City will commence. The lending portfolio of Oman Housing Bank and the “Iskan” programme will also be reinforced.
He said that based on the estimates of the approved 2026 budget, it is planned to finance these needs through domestic borrowing amounting to approximately RO 902 million, external borrowing of about RO 990 million and drawing from reserves by about RO 400 million. — ONA
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