Ministry of Finance Projects 2018 State Revenues to Reach QR175.1 Billion

December 13, 2017

The Ministry of Finance expects the revenues of the State of Qatar to reach QR175.1 billion during the year 2018, which translates to a 2.9% rise, compared to revenues recorded in 2017.

The ministry stated, on the sidelines of the announcement of Qatar's 2018 budget, that the reason for this expected surge is due to increased non-oil revenues.

The budget, which starts on January 1, 2018, sets the oil barrel price at $45, similar to the 2017 budget. Consequently, budget deficit is expected to reach QR28.1 billion, a decrease of 1.1% compared to 2017, which amounted to QR28.4 billion. This deficit will be financed through debt issuances.

The estimated expenditure during 2018 is QR203.2 billion, an upsurge of 2.4% compared to QR201.5 billion in 2017. This increase is due to the launch of a number of new schools and educational facilities, in addition to new healthcare centers and hospitals, and ongoing expansions in other public facilities.

Total expenditure on major projects is expected to reach QR93 billion, approximately the same as in 2017. These projects account for the largest share of total expenditures, at 45.8%. The focus is on delivering vital projects in healthcare, education, transport, as well as projects related to Qatar 2022 FIFA World Cup.

In 2018, new contracts valued at QR29 billion are expected to contribute to the growth of the private sector. In addition, the funds allocated to the sports sector and projects related to the 2022 World Cup have reached QR11.2 billion, as the focus will be on the completion of stadiums and sports facilities.

A total of QR12.5 billion has been allocated for the development of land for citizens over three years from 2018 to 2020. These developments include water and electricity grids, sanitation, roads and other related infrastructure necessary for the construction of 3,000 homes for citizens.

Budget allocation for the health sector amounted to QR22.7 billion, representing 11.2% of the total expenditure during 2018. The education sector has witnessed a significant expansion, with a total share amounting to QR19 billion from the 2018 budget. Transport and infrastructure projects obtained the lion’s share in the budget of 2018, with allocations worth QR42 billion, which represents 21% of the total value of expenditures.

Salaries accounted for QR52.2 billion in the fiscal year 2018 budget, an increase of 8.8% compared to QR48.0 billion in 2017. H.E. Ali Shareef Al-Emadi, Minister of Finance, explained that the rise in salary allocations is due to the launch of a number of new schools and educational facilities, in addition to numerous healthcare centers and hospitals.

His excellency stressed that the directives of His Highness the Emir Sheikh Tamim bin Hamad Al Thani, have been adhered to in order to increase the efficiency of current and operational expenses, and provide all necessary funds to complete the implementation of major projects according to approved plans. The goal is to achieve sustainable development in its economic, social, human and environmental dimensions, as envisioned by Qatar National Vision 2030. The budget also focuses on providing support for food security projects, supporting and expanding small and medium ventures and developing infrastructure in the economic and free zones.

Although neighboring countries imposed an unfair blockade on Qatar since June 2017, the Qatari economy has maintained its momentum. Minister of Finance said the outlook for the Qatari economy remains very positive, stating that: “Qatar continues to make significant progress in reducing its deficit, which resulted from low fuel prices and high costs of development projects. Also, the unjust blockade has contributed in stimulating our national strategy geared towards diversifying the country's economy.”

“Revenues are rising significantly, and the reasons for this increase should be attributed to the efforts of the Government of Qatar to diversify its economic endeavors. The Government allocates more funds to major projects in a variety of sectors, which contributes to sustainable development efforts in Qatar”, He added.

The 2018 budget is in line with the directives issued by His Highness the Emir Sheikh Tamim bin Hamad Al Thani, which recommended the highest efficiency in regards to current spending, while maintaining the necessary allocations for the implementation of the approved major projects that contribute to the promotion of development efforts in Qatar. This approach is in harmony with Qatar National vision 2030 and its pillars of economic, social, human and environmental development. It should be mentioned that the 2018 budget also focuses on supporting food security projects, small and medium enterprises, and infrastructure development in free economic and trade zones.