Oman 2025 budget deficit below forecast as revenue rises

• Gap 23% smaller than forecast
• Oil income higher than expected
• Revenue up 5% versus projection

Oman’s budget deficit for last year came in 23 percent below the official forecast, helped by higher-than-expected revenue, the finance ministry said.

The Gulf state posted a budget shortfall of OMR480 million ($1.2 billion) for 2025, versus a forecast deficit of OMR620 million predicted in the budget. 

Revenue came to OMR11.76 billion, up 5 percent against the forecast.

“The lower recorded deficit in 2025 was due to higher returns from oil revenues. The surplus income will be used to pay for the national debt,” the report said. 

Oman’s oil revenue in 2025 totalled OMR6.1 billion, up from the estimated OMR5.8 billion. 

The sultanate recorded an average oil price of $71 per barrel last year, up from $60 estimated in the 2025 budget. 

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Oman’s average daily oil production in 2025 edged up 1 percent from the previous year to 1 million barrels, the National Center for Statistical Information said.

For the 2026 budget, Oman forecasts a deficit of OR530 million. Revenue, based on an average oil price of $60 per barrel, is seen at OMR11.5 billion.

The public debt is projected at OMR14.6 billion by the end of 2026, accounting for almost 36 percent of GDP.

For 2024, Oman posted a budget surplus of $1.4 billion as it sold oil at an average price of $82 per barrel, a third higher than the official forecast of $60.