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Qatar’s budget for the fiscal year (FY) 2000-2001, according to figures obtained from the Ministry of Finance, Economy and Commerce by MEES, includes a 5.5% increase in current expenditures and a 38.8% rise in capital expenditures over the previous year (see table below). It also projects a 35.5% increase in spending on public works, infrastructure and economic services, a 53.6% rise in spending on social and health services and a 41% rise in spending in the category of education/youth.
When compared with budgets for fiscal years prior to 1999-2000, a year widely described as one of "austerity," the difference in spending levels is less stark and in some cases represents a reduction in government support for the various sectors. For example, current expenditure for FY1998-1999 is 3.9% above the latest figures, although capital spending for the same year was 16.6% less than in FY2000-2001.
Qatari Budgets: 1996-7 To 2000-2001
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2000-2001
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1999-2000
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1998-1999
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1997-1998
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1996-1997
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1995-1996
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Revenues
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12,617
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10,533
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12,354
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13,397
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10,797
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9,204
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Expenditures
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15,400
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14,136
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15,660
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16,387
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13,747
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12,735
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Current Spending
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13,378
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12,680
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13,926
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13,719
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11,520
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10,511
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Capital Spending
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2,022
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1,456
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1,734
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2,668
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2,227
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2,224
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Public Works/Infrastructure
and Economic Services
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1,545*
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1,140
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1,416
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2,315
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1,899
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1,859
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Social/Health Services
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384
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250
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241
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285
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273
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280
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Education/Youth
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93
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66
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77
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67
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56
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85
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Deficit
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2,783
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3,603
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3,306
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2,990
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2,950
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3,531
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* For FY2000-2001, the official figure includes Public Works/Infrastructure and Economic Services but for previous years the two categories were disaggregated. For the purpose of comparison, they have been aggregated in the above table.
The latest figures offer only a limited guideline to government policy in the absence of closed account data for FY1999-2000, which have yet to be released. However, the levels of sectoral allocations, coupled with recent official statements calling for government entities to stay within the boundaries of their budgets, broadly suggest that Qatar is maintaining tight fiscal discipline and has adopted no major policy changes. Sources in Qatar say that the government is keen to clear its outstanding financial obligations and has recently paid QR450mn ($123.6mn) in 1Q to government contractors while maintaining fiscal stringency. (For more analysis of Qatar’s latest budget, see MEES, 17 April.) The country is also expected to return to the sovereign bond market sometime in the near future with some analysts predicting a $1.5bn, 30-year issue priced somewhat higher than its 395bps over Libor predecessor (MEES, 17 May, 1999).
© Copyright MEES 2003.
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