Sultanate of Oman is experiencing fiscal deficit in its annual fiscal budgets. The fiscal deficit, which is calculated as percentage of GDP, has been fluctuating widely. The trend observed in fiscal deficit as a percentage of GDP in Oman has been increasing initially since 2012 and declining later from 2017. This trend indicates that Oman had faced different faces of business cycles in these 11 years of time. Thus, a study of contributing forces on the fiscal deficit should have been done, so the positive aspects of fiscal policies and the challenges in following such policies could be found as insights. The revenue components of Oman include oil revenue and non-oil revenue such as taxes from corporates. Similarly, the expenditure part of the country will include the purchases done internationally to meet the needs and wants of the people, providing education to the youth, offering health benefits at the best possible manner for the people and the investments that are made for reducing the oil sector dependency. Oil sector contribution is much higher for the country in terms of revenue and the government spending on social benefits of the people and defense is the highest in expenses part. Though non-oil revenues are there, the proportion of that has been 25% of total revenues. The government of Oman has been working hard to improve this trend and make the country non-oil dependent in the future. The contribution towards social benefits proves that it is one of the key resources’ takers but contributing in higher proportion in achieving desired GDP. Oman 2040 aims at improving the economic conditions through establishing a structured framework. The conditions that Oman currently are quite encouraging and having potential in making the current fiscal deficit to surplus in the shortest possible time.