Qatar to use budget surplus prudently: Finance Minister

Qatar will use its budget surplus prudently by transferring it to a general reserve account in accordance with the provisions of the State Financial System Number 2 of 2015.Replying to a question by Gulf Times Editor-in-Chief Faisal Abdulhameed al-Mudahka at a media event hosted by the Ministry of Finance in Doha Tuesday, HE the Minister of Finance Ali bin Ahmed al-Kuwari said the surplus will be used to prop up the new Financial Stability Fund besides bolstering QCB reserves and reducing public debt.Al-Kuwari said new Financial Stability Fund would ensure the economy did not suffer even if the energy prices plummet."While there are goods days, there will be bad days too. We need to be prepared for such situations,” the minister emphasised.He said the budget for fiscal 2023 estimated a surplus of QR29bn. The budget has set spending at QR199bn with total revenue of QR228bn next year.Qatar’s oil revenue is expected to be QR186bn and non-oil revenue QR42bn in 2023.Higher revenue projected for next year (QR228bn) has been mainly due to the adoption of an average oil price of $65 per barrel for fiscal 2023 in place of $55 per barrel in 2022.The conservative figure of $65 per barrel on which the 2023 budget has been based is part of the strategy of the Ministry of Finance to allocate financial resources towards existing commitments expected during the year to fund National Development Strategy (NDS) programmes and projects.Al- Kuwari noted that Qatar’s public debt fell to 44.5% of the country’s GDP this year, from 58% in 2021.This, he said, is as a result of the state’s commitment to paying due external debt, in addition to the growth in GDP at current prices.The rise in energy prices and Qatar’s conservative fiscal policy (spending control and reducing levels of public debt, especially external debt) has improved the State’s credit rating.Moody’s raised Qatar’s outlook from stable to positive and assigned ‘Aa3’ rating.Standard & Poor's credit rating for Qatar has been raised to ‘AA’ with stable outlook.Fitch affirmed Qatar’s credit rating at AA- with stable outlook."Qatar’s credit rating reaffirms financial stability as well as a strong and flexible local economy, both of which attract foreign investments and help reduce the cost of borrowing,” al-Kuwari noted.

Qatar to achieve double-digit growth by 2027

Driven by higher LNG revenues from the North Field expansion, Qatar expects to achieve a double-digit growth by 2027, said HE the Minister of Finance Ali bin Ahmed al-Kuwari. He said the national economy is expected to grow by 4.5% in 2023 as per International Monetary Fund (IMF) calculations.At the event, al-Kuwari made a presentation on Qatar’s budget for the fiscal year 2023, which has set spending at QR199bn with total revenue of QR228bn, generating an estimated surplus of QR29bn.Qatar’s oil revenue is expected to be QR186bn and non-oil revenue QR42bn in 2023.

22 new projects to be implemented in 2023, at a cost of QR9.8bn

Qatar will continue high spending on projects supporting the local economy, HE the Minister of Finance Ali bin Ahmed al-Kuwari said and noted some 22 new projects will be implemented in 2023, at a total cost of QR9.8bn. Addressing editors of various Qatari media outlets in Doha Tuesday al-Kuwari said the continued high spending on public projects is in line with the State’s plans to complete and finalise infrastructure projects, especially those related to existing and new lands of citizens as well as projects supporting the local economy.