Oman estimates budget deficit of $1.6bn in 2025

• Spending to increase 1.5%
• Forecast based on $60 oil price
• Target of 3% GDP growth

Oman estimates a budget deficit of OR620 million ($1.61 billion) in 2025, with total spending likely to reach OR11.8 billion, a 1.5 percent increase year on year.

The revenue forecast is based on an average oil price of $60 a barrel, state-run Oman state news agency reported.

The deficit will be funded through local and external borrowing of OR220 million and withdrawing OR400 million from reserves. Public debt repayments are forecasted at OR1.8 billion.

The budget aims to strengthen financial sustainability and targets real GDP growth of nearly 3 percent in 2025, local media reported, citing finance minister Sultan bin Salim Al Habsi at a press conference.

Nearly OR5 billion, or 42 percent of total public spending, has been earmarked for social and basic sectors, with 39 percent allocated for education, 28 percent for social security, and 24 percent for healthcare, he said.

Key infrastructure initiatives include constructing 20 government schools, issuing tenders for 22 new schools, expanding the Muscat Expressway, and developing new ports and dams.

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Preliminary results for the 2024 budget show a surplus of OR540 million, a turnaround from the previously expected deficit of OR640 million. Revenues increased by 15 percent to OR12.7 billion, while public spending reached OR12 billion.

The ministry said the additional revenue generated in 2024 was directed towards social spending and reducing public debt.