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.
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