19-05-2025
Oman prepares framework for 2026 budget and 11th five-year plan
MUSCAT: The Ministry of Finance held a preparatory meeting today to set the stage for the state's general budget for 2026 and the financial framework of the Eleventh Five-Year Development Plan (2026–2030). The meeting, aligned with Financial Circular No. 1/2025, brought together representatives from 70 government units to ensure a unified approach to fiscal planning.
The session aimed to clarify the budget preparation guidelines and development project approval rules outlined in the circular. It also stressed the importance of aligning financial allocations with annual plans, adhering to performance indicators, controlling public expenditure, and reinforcing program and performance-based budgeting.
Abdullah bin Salem al Harthy, Under-Secretary of the Ministry of Finance, highlighted the positive impact of the government's fiscal measures since 2020, supported by higher oil prices. He noted improvements in key economic indicators, including reduced public debt and restored credit ratings. However, he cautioned that these gains remain fragile due to global economic uncertainty and ongoing geopolitical tensions, which continue to affect energy and commodity markets.
Al Harthy stressed the need for continued collaboration across government entities to manage public finances effectively, boost non-oil revenues, and enhance spending efficiency.
Mohammed bin Ahmed al Barashdi, Director General of the General Directorate of Budget, emphasized the Ministry's commitment to fostering integration and coordination among government units. He said the meeting was essential to ensure accurate budget estimates for 2026 and alignment with the priorities of the Eleventh Five-Year Plan in line with the government's fiscal reform agenda. – ONA
