Oman’s public revenues rose by 8 percent in 2025 to reach OMR12.122 billion, compared to the approved budget estimate of approximately OMR11.180 billion, supported by higher oil and gas revenues, according to the Ministry of Finance.

The Ministry announced on Sunday the final account of the actual performance results of the State’s General Budget for the fiscal year 2025. The results were broadly in line with the estimates approved at the beginning of the year, which had projected public revenues of around OMR11.180 billion, public spending of about OMR11.800 billion, and an estimated deficit of approximately OMR620 million.

Actual public spending by the end of 2025 stood at approximately OMR12.583 billion, marking a 7 percent increase over the approved budget. The rise was driven by higher social spending and support measures aimed at stimulating economic activity, including increased subsidies for petroleum products, support for the electricity sector, and higher development spending to accelerate ongoing projects.

As a result, the realised deficit fell by 26 percent compared to the approved budget estimate, reaching approximately OMR461 million.

Oil And Gas Revenues Support Budget Performance

Total oil revenues, including oil and gas, increased by 11 percent compared to the approved budget, reaching approximately OMR8.481 billion by the end of 2025.

Net oil revenues stood at around OMR6.640 billion, up 14 percent from the OMR5.830 billion estimated in the 2025 budget. The increase was attributed to higher average oil prices in global markets, with the average realised oil price reaching approximately US$72 per barrel, compared to the approved price of US$60 per barrel in the 2025 budget.

Average production of oil and oil condensates reached about 999,000 barrels per day, compared to the budget estimate of approximately 1,001,000 barrels per day. The Ministry said this reflects the government’s commitment to the voluntary production reduction mandated by Opec Plus.

Net gas revenues amounted to approximately OMR1.841 billion, representing a 4 percent increase compared to the approved budget estimate of around OMR1.777 billion. The increase was attributed to the rise in the average selling price of liquefied natural gas from US$5.41 to about US$7.49.

Non-Oil Revenues Reach OMR3.64bn

Total non-oil revenues by the end of 2025 reached approximately OMR3.641 billion, an increase of OMR68 million compared to the approved budget.

This included about OMR3.602 billion in current revenues and approximately OMR39 million in capital revenues and recoveries.

Public Spending Rises On Development And Subsidies

On the expenditure side, current spending increased by 2 percent to approximately OMR8.726 billion, compared to the approved 2025 budget of around OMR8.555 billion.

Defence and security expenditures accounted for about OMR3.066 billion, while civil ministries’ expenditures stood at approximately OMR4.780 billion. Public debt service amounted to around OMR880 million.

Total development expenditures for ministries and civil government units, along with spending on projects with a developmental impact, surged by 38 percent to reach approximately OMR1.577 billion compared to the approved 2025 budget.

The Ministry attributed this increase to higher financial liquidity allocated to the development budgets of government units and governorates for 2025, aimed at accelerating the implementation of development projects approved under the Tenth Five-Year Development Plan 2021-2025.

Infrastructure accounted for about 43 percent of total actual development spending in 2025, followed by social infrastructure at 40 percent, the service production sector at 12 percent, and the commodity production sector at 5 percent.

Total contributions and other expenses reached approximately OMR2.280 billion, up 8 percent from the approved budget of around OMR2.105 billion.

The increase was mainly due to higher spending in key areas, including subsidies for petroleum products, which amounted to OMR124 million compared to the approved budget of about OMR35 million. Electricity sector subsidies reached approximately OMR606 million, an increase of OMR86 million compared to the approved figures. This came in implementation of the Royal Orders to fix fuel selling prices.

Deficit Narrows To OMR461mn

The State’s General Budget officially recorded a financial deficit of approximately OMR461 million by the end of 2025, compared to the estimated deficit of around OMR620 million, supported by the increase in oil revenues.

Total public debt stood at approximately OMR14.6 billion by the end of 2025, decreasing by about OMR15 million compared to 2024. This was achieved while meeting all financing requirements and carrying out liability management operations without increasing total debt.

Zaher Marhoon Al Abri, Director General of the Directorate General of Treasury and Accounts at the Ministry of Finance, said the actual performance of the State’s General Budget was closely aligned with the approved budget.

He noted that this reflects the accuracy of financial planning, the realism of the assumptions underpinning the approved estimates, and the government’s efforts to enhance spending efficiency and manage public finances effectively.

In a statement to Oman News Agency, Al Abri said the Ministry of Finance continues to evaluate financial performance in coordination with various government entities, with the aim of improving government spending efficiency and diversifying sources of public revenue in line with the objectives of Oman Vision 2040.