Skip to content Skip to Search
Skip navigation

Oman forecasts 2024 budget deficit despite higher revenue

By Pramod Kumar
Oman's finance minister Sultan Al Habsi said the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices Oman News Agency
Oman's finance minister Sultan Al Habsi said the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices

Oman expects a budget deficit of OMR640 million ($1.66 billion) in 2024, 1.5 percent of the country’s gross domestic product (GDP).

Total revenues are projected at OMR11.01 billion, up 9.5 percent from 2023 estimates, with non-oil revenues estimated at OMR520 million, the state-run Oman News Agency reported, citing the finance ministry statement.

Oil revenues are projected to reach OMR5.92 billion in 2024, lower than OMR6.9 billion estimated in 2023.

Expenditure is estimated to be OMR11.65 billion, an increase of 2.6 percent year on year.

The 2024 budget is calculated on an average oil price of $60 per barrel.

Finance minister Sultan Al Habsi stated that the budget estimates are designed to ensure that financing needs are met even if there is a decline in oil prices.

“The government will continue to pay the public debt and reduce it as much as possible.”

The preliminary results showed a budget surplus of OMR931 million in 2023, against an earlier estimated deficit of OMR1.3 billion.

In addition, the preliminary results indicated that the government reduced public debt from OMR17.6 billion to OMR15.2 billion in 2023.

The minister disclosed that the government expects to pay back OMR1.6 billion debt this year, adding that subsidies on fuel prices will continue.

Oman launched a medium-term fiscal programme in 2020 to reduce public debt, diversify revenue sources, and drive economic growth.

In November 2023, the International Monetary Fund said that Oman’s economic growth would rebound in 2024 on higher oil production and robust non-oil growth.

The Sultanate’s GDP growth is forecast to slow down this year to 1.3 percent from 4.3 percent in 2022 due to Opec+-related oil cuts.

Latest articles

Cargo is loaded onto an aeroplane. The Middle East-Europe route accounts for 5% of global traffic

Middle East-Europe is ‘fastest-growing route for air cargo’

The Middle East-Europe route for air cargo was the fastest growing in the world in October, according to International Air Transport Association figures.  Annual growth in cargo tonne-kilometres stood at 15.3 percent in October, IATA said. The global average is 9.8 percent and the Middle East average is 4.5 percent. The Middle East-Europe route has […]

Solar panels near Nanchang, China; Acwa Power wants to acquire clean power assets with a value of up to 20GW

Acwa Power plans to invest $50bn in China by 2030

Saudi energy company Acwa Power plans to invest up to $50 billion in renewable energy projects in China, a senior executive said on Tuesday.  Lyu Yunhe, Acwa Power’s head of China operations, said they aim to work with Chinese state-owned companies to acquire clean power assets with a value of up to 20GW and an additional 1 […]

Tunisian prime minister Kamel Madouri speaks in parliament during a session to discuss the 2025 budget

Tunisia seeks $2.2bn from central bank to repay debts

Tunisia’s central bank will provide $2.2 billion to the government to help repay debts next year, according to news reports. The funding follows the parliamentary approval of a budget law amendment that allows the government to borrow directly from the central bank. This marks the second instance within a year of the government tapping the central […]

The Jumeirah Thanda Island hotel is on a remote island in a protected private marine reserve off the coast of Tanzania

Jumeirah enters Africa to expand hotel portfolio

Jumeirah, a member of Dubai Holding, has partnered with South Africa’s Thanda Group to expand the luxury brand into Africa, as it aims to diversify its portfolio of destinations. The companies have launched a private island and safari reserve. The Jumeirah Thanda Island, a villa retreat, is located on a remote island in a protected […]