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Oman’s 2025 budget forecasts revenue increase, driven by oil & gas

Around OMR 44 million has been set aside in the 2025 budget for Oman's Governorates Development Programme

According to Oman’s 2025 state budget, total revenue will be around OMR 11.18 billion, assuming an average oil price of USD 60 per barrel and daily production of 1.0 million barrels. In comparison to the projected revenue for 2024, this indicates a 1.5% increase.

Additionally, the budget allots OMR 1,834 billion for the repayment of public debt.

A significant improvement over the initially anticipated deficit of OMR 640 million, preliminary results for 2024 show a financial surplus of about OMR 540 million. This favourable result is ascribed to a 15% rise in overall revenue, which now stands at OMR 12.674 billion. This increase was primarily due to higher oil and gas revenues, which increased by 14.3% to roughly OMR 1.8 billion and 24.3% to OMR 7.353 billion, respectively.

In 2024, public spending came to OMR 12,134 billion. In addition, OMR 110 million was saved on debt servicing expenses when the government successfully lowered the national debt from OMR 15.2 billion to OMR 14.4 billion.

The budget for 2025 allots OMR 8.555 billion for current expenses, which amounts to 72% of all public spending. Including investments from other government agencies like the Oman Investment Authority and its subsidiaries, as well as the Oman Energy Development Company, the estimated development and investment spending for 2025 is OMR 4.44 billion.

Around OMR 44 million has been set aside in the 2025 budget for the Governorates Development Programme. Furthermore, a 1.2% levy on purchase invoices from the oil and gas industry has been used to augment the OMR 50 million allotted to employment initiatives for job seekers in the private sector.

Among the major development initiatives scheduled for 2025 are the completion of 20 new government schools and the bidding process for the building of 22 more. The construction of numerous ports and dams, the enlargement of the Muscat Expressway, and the completion of nine government hospitals are also top priorities.

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