Muscat, Jan 2
Oman’s General Budget for the Fiscal Year 2025 underscores the government’s commitment to economic sustainability, fiscal prudence, and development in alignment with the financial framework of the Tenth Five-Year Development Plan (2021-2025) and Oman Vision 2040. As the final year of the Tenth Five-Year Plan, the 2025 budget is designed to maintain financial, economic and social stability while addressing global economic uncertainties. Below is a comprehensive analysis of the budget’s revenue, expenditure, deficit, sectoral priorities and key performance indicators.
Revenue Estimates:
The total public revenue for 2025 is estimated at RO 11.180 billion, reflecting a 1.5-per cent increase from 2024. This growth is driven by higher gas and non-hydrocarbon revenues. The budget assumes an average oil price of $60 per barrel and an average daily oil production of over 1 million barrels.
Revenue Breakdown:
1. Oil revenue: RO 5,830 million, accounting for 52 per cent of total revenue, though declining by 1.4 per cent from 2024 due to reduced production.
2. Gas revenue: RO 1,777 million, contributing 16 per cent to total revenue and growing by 12.8 per cent from 2024, thanks to increased domestic sales and higher prices.
3. Non-hydrocarbon revenue: RO 3,573 million, a 1.5-per cent increase, attributed to improved tax collection and economic recovery.
• VAT and excise taxes: RO 680 million.
• Corporate income tax: RO 656 million.
• Oman Investment Authority dividends: RO 800 million.
• Government service fees: RO 1,384 million.
4. Capital revenue and repayments: RO 53 million, a 18.5-per cent decline from 2024.
Expenditure Estimates:
The total public expenditure is set at RO 11.800 billion, marking a 1.3-per cent increase from 2024. The budget prioritises essential social services, development projects and public debt servicing.
Expenditure Breakdown:
1. Current expenditure: RO 8,555 million, constituting 72 per cent of total spending.
• Defence and security: RO 3,070 million, unchanged from 2024.
• Civil ministries: RO 4,570 million, a 2.6-per cent increase, reflecting staff promotions and settlement of private sector dues.
• Public debt service: RO 915 million, reduced by 12.8 per cent, owing to improved debt management.
2. Development expenditure: RO 900 million, with allocations for critical infrastructure, housing and employment initiatives.
3. Contributions and other expenses: RO 2,345 million, a 7.7-per cent increase, driven by higher subsidies and social protection allocations.
• Subsidies include:
• Electricity: RO 520 million.
• Water and sewage: RO 194 million.
• Food: RO 15 million.
• Fuel: RO 35 million.
• Social Protection: RO 577 million.
Budget Deficit and Financing Plan:
The 2025 budget deficit is projected at RO 620 million, representing 6 per cent of total revenue and 1.4 per cent of GDP. This is a 3.1-per cent reduction from the 2024 deficit estimate. The deficit will be financed through:
1. Net Borrowing: RO 220 million.
• External Borrowing: RO 1,304 million.
• Local Borrowing: RO 750 million.
2. Withdrawal from Reserves: RO 400 million.
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