Omans 2024 budget targets priority sectors and social welfare
23/01/24
Oman’s state budget for 2024 aims to maintain spending levels in essential sectors including education, health and housing. In addition, it prioritises the development and investment in strategic projects and the enhancement of social welfare schemes while simultaneously reducing public debt.
The Ministry of Finance estimates total public spending at OMR 11.65 billion (USD 30.25 billion) for this year, a 2.6% increase compared to 2023. Total estimated revenues are expected to be OMR 11.01 billion (USD 28.6 billion), an increase of 9.5% against last years figures. Its 2024 budget aligns with the objectives of Omans Vision 2040 as well as the Medium Term Fiscal Plan (2021-2025) to maintain financial, economic and social stability as well as sustainable growth.
The Minister of Finance revealed that oil income constitutes 54% of total revenue in the 2024 budget, with the gas sector contributing a further 14%. Conversely, non oil income totals 32% of total revenues. Oman’s estimated oil revenues are based on the price of USD 60 per barrel and an average daily oil production of 1.031 million barrels per day.
Importantly, Oman’s budget considerably supports social welfare by empowering the Social Protection Fund. As a result, it will incorporate initiatives aimed at enhancing insurance coverage and social protection for citizens. Therefore OMR 1.31 billion (USD 3.4 billion) has been allocated to these programmes. Out of this, OMR 560 million (USD 1.45 billion) will support benefits for the elderly, children, persons with disabilities, widows and orphans.
Positively, the Ministry also highlighted the fact that Oman’s public debt to gross domestic product (GDP) ratio stood at approximately 35% at the end of 2023. This figure represents a 50% decline compared to its 2020 peak when the Sultanate’s public debt reached around 70% of GDP.
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