Qatar’s budget surplus jumps 84% q/q to USD 4.1bn in Q1 2013

By bne IntelliNews August 20, 2013

Qatar’s budget produced a QAR 15bn (USD 4.1bn) surplus in the first three months of 2013, recording a 84% q/q increase on a sharp revenue growth which helped offset surging spending on public wages and infrastructure, the central bank said. The reading accounted for 8.1% of full-year GDP forecast, up from 4.5% in the previous quarter.

Higher hydrocarbon prices and output pushed state income up by 55% q/q to QAR 79.585bn but spending climbed 49% q/q to QAR 64.582bn as the government increased public wages to help avoid any potential unrest. The FY 12/13 state budget, which ended in March, assumed an oil price of USD 65 a barrel, up from USD 55 a barrel the year before.

The new state budget for FY 2013-14, which started on April 1, envisages an 18% y/y increase in spending to QAR 210.6bn (USD 58bn) and QAR 218bn in revenue (up 6%).The new budget, thus, implies a QAR 7.4bn surplus. The government will increase significantly public spending on infrastructure, public wages, education and other social projects. The budget assumes a conservative USD 65 a barrel crude oil price, the same the year before.

Spending on public projects will jump 40% y/y to QAR 74.9bn in the current fiscal year. Spending on education was also upped by 15% given the sector’s value-added share of 3.8% of GDP, according to the finance ministry. Current spending will rise 27% y/y to QAR 77.5bn in the current FY given a 24% increase in public salaries spending to QAR 44.3bn. Capital expenditure will likewise rise by 9% to QAR 13.9bn.

Related Articles

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more

Survival of Iran nuclear deal appears far less likely under US Secretary of State Mike Pompeo

The odds on the Trump administration attempting to kill the Iran nuclear deal substantially shortened on March 13 with the firing-by-tweet of US Secretary of State Rex Tillerson and his replacement ... more

Billion-dollar petrochemical facility to be built in Turkey by Algeria's Sonatrach

Algerian national energy company Sonatrach has struck a deal with Turkey's Ronesans and Bayegan to build a petrochemical plant worth $1bn in Turkey, Turkish President Recep Tayyip Erdogan said on ... more

Dismiss