Muscat – Oman’s Ministry of Finance has unveiled the State’s General Budget for the 2025 fiscal year, projecting public spending at RO11.8bn, a 1.3% increase compared to 2024 estimates.

Total government revenues are forecast at RO11.18bn, marking a 1.5% rise from 2024. Revenue estimates are based on an assumed oil price of $60 per barrel and average daily production of over 1mn barrels. The 2025 budget outlines a deficit of RO620mn, representing 5.5% of estimated revenue.

H E Sultan bin Salim al Habsi, Minister of Finance, stated at a press conference that the budget aims to consolidate financial sustainability measures while targeting real GDP growth of at least 3% in 2025.

He noted that approximately RO5bn, or 42% of total public spending, has been allocated to social and basic sectors. This includes 39% for education, 28% for social security, and 24% for healthcare.

The minister highlighted that RO557mn has been earmarked for social protection programmes, while RO1.14bn is allocated to development projects with significant economic impact.

The contribution and other expenses category of the budget, which includes government subsidies, has received an estimated allocation of RO2.345bn. This includes RO577mn for social protection, RO520mn for electricity subsidies, RO194mn for water and sanitation, RO35mn for fuel subsidies, RO15mn for essential food items subsidy, and RO73mn for housing and development loan interest subsidy.

H E Habsi further emphasised that funding will support governorates in implementing development programmes and assist government entities in creating employment opportunities in both public and private sectors.

Oman’s total financing requirements for 2025 are estimated at RO2.454bn, covering the projected deficit as well as scheduled loan repayments during the year.

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Nisha Joshi