MUSCAT: The latest financial bulletin from the Ministry of Finance revealed that the government successfully settled more than RO 749 million in dues owed to the private sector by the end of June 2025. These payments were processed through the official financial system, ensuring timely clearance of obligations to businesses. This move underscores the government’s ongoing commitment to supporting the private sector, maintaining liquidity, and promoting economic stability amid challenging market conditions. By honoring these dues, the authorities aim to bolster business confidence and sustain investment momentum in key sectors.
Despite this positive step, the report indicated a decline in public revenues, which fell by 6 percent year-on-year, totaling RO 5.839 billion by the close of the second quarter. The Ministry attributed this drop primarily to a reduction in oil revenues, reflecting global price fluctuations and varying production levels. Given that hydrocarbon income constitutes a major portion of Oman’s budget, any shift in oil markets significantly impacts the state’s financial position. The dip highlights the persistent vulnerability of public finances to external energy market trends, reinforcing the need for diversification efforts outlined in Oman Vision 2040.
On the expenditure side, the bulletin noted a rise in public spending, which reached RO 6.098 billion by mid-year. This figure represents an increase of RO 292 million, or 5 percent, compared to actual expenditure during the same period in 2024. The uptick was driven by higher allocations for development projects and operational costs across various government entities. While increased spending can stimulate economic activity, it also raises concerns regarding the fiscal deficit, especially when revenue performance weakens. Balancing these pressures remains a critical task for fiscal policymakers as they strive to maintain stability without compromising growth objectives.
Looking ahead, the Ministry of Finance is expected to implement further fiscal measures to manage the revenue shortfall and ensure continued support for priority sectors. Strategies may include optimizing non-oil revenue streams, enhancing efficiency in public spending, and accelerating economic diversification initiatives. While global oil dynamics remain uncertain, Oman’s commitment to financial discipline, coupled with proactive settlement of private sector dues, reflects a clear intent to maintain investor trust and safeguard the national economy during a period of ongoing global volatility.
