MUSCAT: The Ministry of Finance recently concluded an extensive round of budget discussions, engaging in over 68 meetings with various government entities to shape the fiscal and social direction of Oman for the year ahead and the coming five years. This comprehensive process goes beyond routine administrative procedures, emphasizing the strategic importance of aligning budgetary allocations with long-term national priorities under Oman Vision 2040. The discussions focused not only on revenues and expenditures but also on how financial decisions will impact public services, economic development, and social welfare initiatives.
Central to this year’s planning is the shift toward program- and performance-based budgeting, which links each expenditure to measurable outcomes. This approach is intended to enhance accountability and ensure that public funds deliver tangible results for citizens. By moving away from traditional line-item budgeting, the Ministry aims to improve efficiency and maximize value for money in public projects, ensuring that government spending directly supports developmental objectives across healthcare, education, infrastructure, and job creation.
A critical aspect of the 2026 budget deliberations has been balancing social and economic needs with fiscal sustainability. While there is a pressing demand to expand programs and improve public services, financial constraints necessitate careful prioritization of spending. The Ministry is tasked with finding the equilibrium between ambitious development goals and responsible fiscal management. Achieving this balance ensures that Oman can pursue inclusive growth while maintaining economic stability and avoiding unsustainable budgetary pressures.
The consultation-driven process highlights a broader shift in governance culture, emphasizing dialogue, coordination, and negotiation across government levels. By involving ministries and leadership teams in the decision-making process, the Ministry fosters stronger ownership and smoother implementation of budgetary measures. As the draft 2026 state budget nears finalization, these decisions will influence not only the immediate fiscal year but also the 11th Five-Year Development Plan and Oman’s long-term vision, supporting investment in human capital, infrastructure, and innovation that will shape the nation’s future through 2040.
