Fiscal Gap: Oman Approves 2026 Budget with Controlled Deficit
Oman has approved its 2026 national budget with a planned shortfall. The decision highlights a careful balance between spending and income. As a result, the FY26 Fiscal Gap remains a key focus for policymakers.
The state news agency confirmed the shortfall at 530 million Omani rials. This equals about $1.38 billion, or 1.3 percent of total output. However, officials see this level as manageable under current conditions.
Spending Plans and Revenue Outlook
The government expects total spending of 11.977 billion rials in 2026. This marks a modest rise of 1.5 percent from the previous year. In addition, ministries have received instructions to submit FY26 proposals.
Revenue projections also show steady improvement. Authorities expect income of 11.447 billion rials for the year. Therefore, revenues should grow by 2.4 percent compared to 2025. Oil continues to play a central role in budget planning.
For example, officials based estimates on an average oil price of $60 per barrel. However, the government continues efforts to broaden income sources.
Debt Levels and Economic Direction
Public debt will likely reach 14.6 billion rials by the end of 2026. This figure equals around $38 billion in dollar terms. As a result, debt would stand near 36 percent of national output.
Officials say this ratio remains within acceptable limits. Moreover, reforms aim to strengthen fiscal discipline over time. These steps include better spending controls and improved revenue collection.
Oman’s leaders stress long-term stability and inclusive growth. They aim to protect social services while supporting economic resilience.
At the same time, the FY26 Fiscal Gap signals cautious financial planning. Overall, the 2026 budget reflects a measured approach. It balances development needs with fiscal responsibility. Therefore, analysts see it as a steady step toward sustainable growth.
