Oman allocates $4.1b in 2025 budget to curb inflation, support essential services

Dubai: The Sultanate of Oman has allocated RO 1.580 billion ($4.1 billion) in its 2025 state budget to subsidies aimed at curbing inflation and supporting essential services, as the government continues its efforts to keep inflation at historically low levels.

Inflation in Oman stood at 0.6 per cent as of November 2024, a decrease from 1.1 per cent during the same period in 2023, according to the National Centre for Statistics and Information.

The low rates are attributed to government measures to control prices, including subsidies for petroleum products, electricity, water, and basic commodities.

In a statement, Sultan Salim Al Habsi, Oman’s Minister of Finance, announced the subsidy allocations for 2025. RO 577 million has been earmarked for the Social Protection Scheme, while RO 520 million will go to supporting the electricity sector. The water and wastewater sector will receive RO 194 million, and the transportation sector is set to receive RO 82 million.

Other allocations include RO 73 million to subsidise development and housing loan interest, RO 59 million to support the waste management sector, and additional funds to maintain subsidies for petroleum products and food commodities.

“These measures are part of the government policy aimed at protecting citizens from inflationary pressures while ensuring economic stability,” said Al Habsi.