Oman’s 2025 budget balances social welfare and economic growth
14/01/25
Oman’s 2025 budget focuses on strategic balance, emphasising social welfare support while advancing fiscal responsibility. Most importantly, it demonstrates the government's commitment to reducing public debt costs by restructuring loans to more cost-effective terms, while also boosting economic resilience.
According to the Oman News Agency, one important initiative of the 2025 budget is its focus on sustaining social support. Key sectors such as petroleum products, electricity, water, sanitation and wastewater continue to benefit from government subsidies, alongside initiatives aimed at strengthening the social protection system.
In addition, the budget also places emphasis on investment spending, particularly in projects that prioritise local content. Experts highlight the potential to reinvest any financial surplus to stimulate economic growth, which would further enhance Oman’s GDP. Moreover, a portion of the budget has been allocated to create job opportunities in the private sector, with a focus on training and employment for Omani citizens.
Furthermore, with forecasts suggesting an average oil price exceeding $70 per barrel, Oman is set to avoid a deficit based on an estimated oil price of $60 per barrel. This positive outlook allows for continued investment in essential infrastructure and social services, in line with the government's long-term development plans.
The 2025 budget aligns with Oman’s Tenth Five-Year Plan and underscores the country’s ongoing efforts to achieve financial sustainability. Notably, the cost of servicing public debt has been reduced to OMR 915 million (USD 2.38 billion), marking a notable achievement in fiscal management.
Most importantly, the government retains its focus on diversifying the economy, with continued investment in sectors like education, healthcare and infrastructure. These initiatives are expected to further improve Oman’s sovereign credit rating, encouraging investment and reinforcing the country’s economic stability.
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