Crisis? What crisis? Qatar budget set to increase capital spending in 2018
HH The Emir Sheikh Tamim bin Hamad Al Thani has endorsed the state budget for 2018 and it is good news all around.
The 2018 budget, which is based on an average oil price of $45 per barrel, has set aside QR93bn for major projects, which account for the largest share (45.8%) of the total expenditure, reported Qatar Tribune.
Revenue is anticipated to reach QR175.1bn, up by 2.9% compared with 2017, mainly due to an expected increase in non-oil revenue, according to The Peninsula.
Spending is expected to total QR203.2bn, up 2.4% from the budget plan for 2017, with the deficit declining 1.1% to QR28.1bn. The deficit will be financed through the issuance of debt.
The 2018 budget has taken $45 for a barrel as the conservative oil price, same as that of 2017. Despite the conservative estimate, many analysts expect oil price to be much higher in 2018. QNB has forecast an average oil price around $60 for a barrel in 2018, reported Gulf Times..
The government has already made it clear that the country’s private sector will be actively involved in the implementation of new projects. Qatar’s private companies including SMEs can expect to get involved in these projects.
Allocations for salaries and wages have increased by 8.8% to QR52.2bn, from QR48bn in 2017. This increase is attributed to the launch of a number of new schools and educational facilities, along with new healthcare centers and hospitals in addition to expansions in some public facilities.
Total allocations for health, education and transportation reached QR83.5bn or 41% of total expenditure. In addition, new contracts aimed at supporting growth in the private sector worth QR29bn billion are expected to be awarded in 2018.
A total of QR12.5 billion has been allocated to land development for nationals in the three year period between 2018 to 20. This includes water and electricity networks, sewerage, roads and other related infrastructure.
The 2018 budget has allocated funds for the development of 3,000 residences for nationals. This year’s budget also provides for the development of logistics, economic and free-trade zones, as well as support for food security projects and agricultural production.
