Oman expects budget gap to fall in 2026 as revenues rise

Oman is projecting a budget deficit of OMR530 million ($1.4 billion) for 2026, a decline of 14.5 percent from last year, the finance ministry said.

The shortfall represents 4.6 percent of revenues and 1.3 percent of gross domestic product, the state-run Oman News Agency reported, quoting finance minister Sultan bin Salem Al Habsi.

Revenue, based on an average oil price of $60 per barrel, is forecast at OMR11.5 billion, up 2.4 percent year on year. 

Public expenditure is estimated at OMR12 billion, an increase of 1.5 percent from last year.  

“The allocations for social protection have been raised in the 2026 budget to OMR614 million, which is projected to benefit more than 1.6 million citizens,” Al Habsi said.

The public debt is estimated at OMR14.6 billion by the end of 2026, accounting for almost 36 percent of GDP.

In addition, the finance ministry unveiled the 11th five-year development plan, which will run until 2030 and drive the next phase of the Vision 2040 economic strategy.

Further reading:

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• Oman GDP rises on growing non-oil revenues

The minister said a dedicated funding stream for economic transformation had been created within the development budget, with OMR400 million allocated annually. 

“Consequently, the total funding envelope for all development projects under the 11th five-year plan has been increased to OMR1.3 billion,” he said.

The five-year plan encompasses OMR15.6 billion of additional investments that will be directed to major economic and social sectors to achieve targeted growth of 5 percent, finance undersecretary Abdullah Al Harthi said.

He said preliminary results for 2025 indicated a 5 percent increase in public revenues and a 4 percent rise in public expenditure.