Oman State General Budget 2026

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His Majesty Sultan Haitham Bin Tarik has approved Oman’s State General Budget for 2026, marking the first year of the Eleventh Five-Year Development Plan and reinforcing the objectives of Oman Vision 2040. The budget prioritizes fiscal sustainability, efficient public financial management, and economic and social stability.

Preliminary results for 2025 show strong fiscal improvement, with public revenue increasing by 5% to RO 11.76 billion and public spending rising by 4%. The fiscal deficit declined by 23% to RO 480 million, while GDP growth reached 2.2% and inflation remained moderate at 0.9%. Oman’s improved financial position led to credit rating upgrades by major international agencies during 2025.

For 2026, budgeted revenue is estimated at RO 11.447 billion, supported mainly by oil, gas, and non-hydrocarbon revenues, while total expenditure is projected at RO 11.977 billion, resulting in a planned deficit of RO 530 million based on an average oil price of USD 60 per barrel. The deficit will be financed through limited borrowing and withdrawals from reserves.

A key highlight is the continued reduction in public debt, with the debt to-GDP ratio declining from 67.9% in 2020 to 35.7% by the end of 2025. Non-hydrocarbon revenue accounts for 33% of total budgeted revenue, reflecting Oman’s strategic focus on economic diversification and reduced reliance on hydrocarbons.

The 2026 budget supports multiple economic and social objectives, including diversification, digital transformation, housing finance, employment generation, social protection, education, innovation, and sustained government subsidies. Despite higher development spending, the deficit remains contained at 1.3% of GDP, demonstrating Oman’s ability to balance growth-oriented investment with fiscal discipline.