Oman Unveils 2025 Budget Prioritizing Stability, Subsidies, and Social Development
Muscat, The Gulf Observer: Sultan bin Salim Al Habsi, Oman’s Minister of Finance, announced the 2025 state budget, emphasizing a strategic approach to ensure sustained financial, economic, and social stability. The budget reflects the government’s commitment to improving public finance indicators, maintaining financial sustainability, and supporting essential services.
The budget, prepared in collaboration with relevant authorities, estimates total public revenues at OMR11.180 billion, based on an oil price of OMR60 per barrel, marking a 1.5% increase over 2024 revenues. Oil revenues constitute 52% of total income, with gas and non-oil revenues contributing 16% and 32%, respectively.
Total public spending is projected at OMR11.800 billion, an increase of OMR150 million compared to the 2024 budget, resulting in a forecasted deficit of OMR620 million. This deficit will be financed through borrowing (OMR220 million) and reserve withdrawals (OMR400 million).
Allocations for social services, including education, health, housing, and social welfare, have risen by 4.2% to OMR5.004 billion. Subsidy allocations totaling OMR1.580 billion will support sectors such as electricity, water, fuel, transportation, and basic commodities, ensuring affordability and stability for citizens.
Development initiatives remain a priority, with OMR20 million allocated annually to each governorate during the 10th Five-Year Plan to promote localized growth. Additionally, OMR80 million will be injected into the Development Bank to bolster value-added projects.
The 2025 budget aligns with Oman Vision 2040, targeting GDP growth, inflation control, and enhanced social protections. Public debt reductions continue, with a decrease of OMR800 million in 2024, bringing total debt to OMR14.4 billion and reducing the debt-to-GDP ratio to 34%.
Addressing journalists, Minister Al Habsi reaffirmed the government’s dedication to comprehensive development, highlighting new job opportunities, increased lending capacities, and support for small and medium enterprises as critical elements of the budget.
The Minister of Finance and Undersecretary Abdullah bin Salim Al Harthy presented detailed insights into economic performance, emphasizing positive trends in foreign direct investment and GDP growth. The continued focus on fiscal discipline and strategic investments aims to sustain Oman’s economic resilience and social progress.
