Summary
The 2024 budget is prepared in accordance with Oman Vision 2040 and the Tenth Five-Year Development Plan (2021-2025), which aims to ensure financial, economic and social stability.
It is based on a set of economic and social objectives such as achieving economic growth of not less than 3%, maintaining the inflation rate at moderate levels (around 3%), achieving financial sustainability, stimulating the investment climate, enhancing the role of Development Bank in financing valueadded projects, operating Oman Future Fund and starting its financing activities, maintaining spending on basic social services provided by the government, developing incomegenerating sources for governorates and continuing to implement national programs. It also acknowledges various financial and economic risks such as oil price volatility, higher interest rates, geopolitical tensions, global inflationary pressures, and climate change and natural disasters.
Highlights of Oman’s 2024 budget
- Revenue to decline by 9.9% compared to preliminary results of 2023 and increase by 9.6% compared to the 2023 budget
- Oil and gas revenues represent 68% of total government revenues
- Non-oil and gas revenues represent 32% of total government revenues
- Expenditure to increase by 3.3% compared to the preliminary results of 2023 and 2.6% compared to the 2023 budget
- Development expenditure cut by 18% compared to the 2023 preliminary results
- Expenses for servicing public debt cut by 12.5% compared to the 2023 budge
- Electricity subsidy cut by 5% compared to the 2023 budget
- Allocation for Social Protection System increased by 46% compared to the 2023 budget
- Allocation for projects of development impact increased by 20% as compared to the 2023 budget
- New expense item included in the 2024 budget
- Budget deficit estimated at 6% of revenue and 1.5% of GDP
- 2024 budget vis-à-vis 2024 projections in the Tenth-Five Year Development Plan
