Budget surplus to help Qatar cut down onpublic debt

Qatar’s efforts at reducing its public debt will get further boost with the country’s budget generating another surplus of QR2.6bn in the second quarter (Q2), according to the Ministry of Finance.
In the first quarter (Q1), the budget had recorded a surplus of QR2bn.
The second quarter of this year saw total budget revenues at QR59.9bn and total expenditure of QR57.3bn, generating a surplus of QR2.6bn.
During Q2, oil price averaged $85 per barrel, the Ministry of Finance said.
While presenting the budget early this year, the Ministry of Finance made an oil price assumption of $60 per barrel in 2024.
“The surplus will be directed to reduce public debt and therefore there is no cash surplus,” the Ministry noted.
Earlier, the state budget had estimated a total annual revenue of QR202bn and spending at QR200.9bn for this year.
Although the budget for 2024 sees a small surplus preliminarily, given Qatar’s commitment to pay the equivalent of approximately QR7.3bn of public debt dues next year, the Ministry of Finance has then estimated a deficit of about QR6.2bn.
In the budget, Qatar has taken a more conservative approach, with an oil price assumption of $60 per barrel in 2024, instead of $65 per barrel in 2023, by taking into account the estimates of international institutions.
The country’s public debt is estimated to fall consistently from this year to 2028, researcher FocusEconomics said in an earlier report.
FocusEconomics estimates public debt (as a percentage of GDP) at 39.7 this year, 37.1 (2025), 36.3 (2026), 33.7 (2027) and 32.7 (2028).
Qatar’s fiscal balance (as a percentage of GDP) has been estimated at 4.8 this year, 4.2 (2025), 5.4 (2026), 5.9 (2027) and 6.5 (2028).
The country’s current account balance (in dollar terms) has been estimated at $35.6bn this year, $35.9bn (2025), $37.7bn (2026), $43.9bn (2027) and $41bn (2028).
Current account balance (as a percentage of GDP) has been estimated at 15.3 this year, 14.8 (2025), 14.2 (2026), 15.2 (2027) and 13.4 (2028).
Unemployment (as a percentage of active population will remain at a meagre 0.2 this year and in 2025 and 0.1 until 2028.
Qatar’s gross domestic product is set to exceed $300bn by 2028, researcher said as it estimates the country’s GDP this year at $232bn.
Meanwhile, the country’s general budget for 2024 continues to focus on achieving the goals of the QNV 2030 related to the development of human capital by focusing on the health and education sectors.
The outlay for the two key sectors constitutes 20% of the total budget.
This underscores Qatar’s commitment to the development of its nationals, recognising that the development of human capital is vital for the progress of all other sectors, be it economic or social.
The allocation for the communications and information technology sector has seen a 200% increase in the next year’s budget compared to 2023.
The doubling of outlay for the ICT sector compared to last year’s budget, reaffirms Qatar’s commitment to fostering a knowledge-based and innovative economy while promoting investments in these pivotal sectors.