Muscat — Oman’s General State Budget for 2026 forecasts total public expenditure of about RO11.977 billion ($31.15 billion), representing a 1.5 percent increase compared with approved spending in 2025, according to figures released by the government.

Total revenues for 2026 are estimated at RO11.447 billion ($29.77 billion), based on an assumed average oil price of $60 per barrel, marking a 2.4 percent rise from approved revenues in 2025, an Oman News Agency report said.

The projected budget deficit stands at RO530 million, down 14.5 percent from the deficit approved for 2025. The shortfall represents 4.6 percent of total revenues and 1.3 percent of gross domestic product (GDP), reflecting continued fiscal consolidation.

The figures were announced at a press conference held on Thursday at the Ministry of Finance, where authorities unveiled details of the financial framework for the Eleventh Five-Year Development Plan (2026–2030), the 2026 General State Budget, and preliminary results for the 2025 budget.

Minister of Finance Sultan Salim Al-Habsi said Oman’s economic activity continues to record steady growth. He noted that projected real GDP at constant prices is expected to reach around RO39.2 billion by the end of 2025, compared with RO34.5 billion in 2021, reflecting a 14 percent increase over the period of the Tenth Five-Year Plan (2021–2025).

Inflation has remained within target levels, with the average inflation rate until November 2025 recorded at about 0.9 percent, supported by government policies on fuel, electricity and water subsidies, as well as price support for essential commodities, the minister said.

Foreign direct investment (FDI) has also expanded sharply. By the third quarter of 2025, FDI in Oman reached RO30.3 billion, an increase of approximately 71 percent compared with the same period in 2021, according to official data.

On government investments, Al-Habsi said the Oman Investment Authority has played a central role in supporting growth through restructuring state-owned companies and managing domestic and international investments. The authority’s assets rose to about RO21 billion by the end of 2025, with investments spread across nearly 50 countries. During the Tenth Five-Year Plan, it contributed more than RO4.4 billion to the General State Budget.

The minister added that the Future Fund Oman has helped attract new investments and support private sector growth, startups and small and medium-sized enterprises (SMEs). By the end of 2025, the fund had approved 164 projects with financial commitments totalling RO462 million, including RO104 million allocated to startups and SMEs.

Higher oil prices during the 2021–2025 period generated additional revenues of RO11.291 billion, which the government used to balance economic and social priorities and reduce public debt. Social spending was increased by RO2.687 billion, economic spending by RO3.837 billion, while RO4.767 billion was allocated to debt reduction.

In the education sector, tenders were awarded for 113 new schools during the Tenth Plan. Of these, 49 schools have been completed, with the remaining 64 scheduled for delivery in 2026 and 2027. The Ministry of Education’s budget has risen from RO1.386 billion in 2020 to RO1.525 billion in 2026.

Healthcare spending has also expanded. The government approved the construction of 11 hospitals and 19 health centres and institutions during the plan period. Four hospitals and 12 health facilities have already been delivered, with five hospitals and five health centres due to come online in 2026. As a result, the Ministry of Health’s budget has increased by about 4 percent, reaching approximately RO1 billion in 2026, up from RO970 million in 2020.

Infrastructure investment included the implementation of about 2,525 kilometres of main and internal roads across governorates at an estimated cost of RO2.7 billion. The housing sector received RO545 million in support during the Tenth Five-Year Plan, in addition to RO227 million allocated to subsidising housing loan interest through the Iskan programme, which has helped reduce waiting periods for housing finance to six months, the minister said.