Muscat – Oman’s total public spending increased by 2% to RO8.914bn during the first nine months of 2025, compared with RO8.722bn recorded in the same period of 2024, according to data released by the Ministry of Finance.

The rise in total spending was driven by higher development expenditure, which rose by RO263mn, or 31%, compared with the same period in 2024. Current expenditure for January–September 2025 amounted to RO6.227bn, reflecting a 1% increase of RO75mn from RO6.152bn reported in the same period last year.

Development expenditure by ministries and government units reached RO1.103bn by the end of September 2025, exceeding the allocated spending ceiling by 23% against the total development budget of RO900mn for 2025. This was driven by accelerated execution of ongoing development projects.

Contribution and other expenses totalled RO1.583bn in the first nine months of 2025, indicating a 9% decrease, or RO148mn, from RO1.731bn recorded in 2024.

Subsidy allocations included RO378mn for the electricity sector, RO424mn for the social protection system, and RO55mn for oil products. In addition, RO300mn was transferred to the future debt obligations budget item.

By the end of September 2025, spending on social sectors and basic services totalled RO3.817bn, distributed as 37% to education, 26% to health, 26% to security and social welfare, and 11% to housing.

By the end of Q3 2025, the Ministry of Finance had paid over RO1.225bn to the private sector, settled through the financial system with complete documentation. This reflects the ministry’s commitment to clearing fully documented private sector dues within an average of five working days.

Revenues decline 8% to RO8.5bn

Oman’s public revenue reached RO8.481bn in the first nine months of 2025, reflecting an 8% decrease from RO9.198bn in the same period of 2024. The decline was largely due to lower hydrocarbon revenue.

The Ministry of Finance’s quarterly bulletin reported net oil revenue of RO4.71bn, a 13% drop from RO5.436bn collected in the same period of 2024, driven by lower average oil prices and production.

Net gas revenue reached RO1.296bn in 2025, reflecting a 4% decline from RO1.345bn in the same period of 2024, attributed to the Integrated Gas Company’s methodology for collecting gas revenue.

Government current revenue totalled RO2.449bn in the first nine months of 2025, up 2% or RO50mn from RO2.399bn in the same period of 2024.

By the end of Q3 2025, Oman’s public debt stood at RO14.7bn, up from RO14.4bn at the end of the same quarter in 2024. ‘This increase is mainly due to the refinancing of domestic debt instruments in line with the borrowing plan, proactive management of obligations due in Q4 2025, capitalising on improved debt market conditions, ongoing government efforts to develop the domestic debt market by building a benchmark yield curve for public debt, and expanding the local debt market through issuance of sovereign sukuk and local development bonds,’ the ministry said.

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