Oman’s public revenues for the fiscal year 2025 increased by 8 percent, reaching RO 12.122 billion, according to final budget results released by the Ministry of Finance. This growth helped reduce the country’s fiscal deficit by more than a quarter, narrowing it to RO 461 million from the initially estimated RO 620 million.

The rise in revenue was primarily driven by stronger oil and gas earnings. Total hydrocarbon revenues reached RO 8.481 billion, an 11 percent increase over the budget forecast. Net oil revenues stood at RO 6.640 billion, 14 percent higher than planned, fueled by an average realised oil price of approximately $72 per barrel, compared with the budget assumption of $60 per barrel. Oil production averaged around 999,000 barrels per day, slightly below the estimated 1.001 million barrels per day, in line with Oman’s commitment to OPEC+ production agreements. Net gas revenues also exceeded projections, reaching RO 1.841 billion, supported by higher liquefied natural gas (LNG) prices that averaged $7.49 per unit, well above the budgeted $5.41.

Non-oil revenues amounted to RO 3.641 billion, which included RO 3.602 billion in current revenues and RO 39 million from capital revenues and recoveries.

On the expenditure side, public spending rose by 7 percent to RO 12.583 billion, up from the budgeted RO 11.8 billion. Current expenditure increased modestly by 2 percent to RO 8.726 billion, with defence and security spending at RO 3.066 billion and civilian ministries’ expenses totaling RO 4.780 billion. Public debt servicing costs were RO 880 million.

Development expenditure saw the most significant rise, surging 38 percent to RO 1.577 billion. This boost was mainly due to larger allocations for accelerating projects under the Tenth Five-Year Development Plan (2021-2025). Infrastructure projects represented 43 percent of total development spending, followed by social infrastructure at 40 percent, with services and productive sectors accounting for 12 percent and 5 percent respectively.

Other expenditures increased by 8 percent to RO 2.28 billion. Fuel subsidies notably climbed to RO 124 million, more than triple the budgeted RO 35 million, while electricity subsidies also rose by RO 86 million to RO 606 million, reflecting government efforts to stabilise energy prices.

Public debt at the end of 2025 stood at RO 14.6 billion, showing a slight decrease of about RO 15 million compared to the previous year.

Zaher bin Marhoon al Abri, Director-General of Treasury and Accounts at the Ministry of Finance, noted that the final budget figures were broadly consistent with initial estimates and credited prudent financial planning and sound public finance management. He affirmed the ministry’s commitment to enhancing spending efficiency and diversifying revenue streams to support Oman Vision 2040 and ensure long-term fiscal sustainability.