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According to figures released recently by the Qatar Central Bank (QCB), the actual outcome for the 1999-2000 fiscal year (beginning 1 April and ending 31 March) was significantly better than originally projected. In its most recent annual report (1999), the QCB shows that higher oil prices resulted in a fiscal deficit of only QR255mn ($70mn), much less than the projected QR3,603mn ($990mn – MEES, 17 April, 2000). Higher oil prices contributed to the total revenue figure of QR14,098mn ($3,873.8mn) – QR3.5bn ($0.96bn) more than the projected amount (see Table below).
Preliminary Estimates Of State Budget For 1999/2000-2000/2001
(QRMn)
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Particulars
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1999/2000 Actual
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1999/2000
Estimated
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2000/2001
Estimated
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Total Revenue
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14,098
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10,533
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12,617
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Total Expenditures
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14,353
|
14,136
|
15,400
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Recurrent Expenditures
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13,166
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12,680
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13,378
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First Chapter
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5,111
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5,111
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4,932
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Second Chapter
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6,490
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6,393
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7,469
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Third Chapter
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1,565
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1,176
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977
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Capital Expenditures
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1,187
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1,456
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2,022
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Deficit
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255
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3,603
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2,783
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Source
: The Twenty Third Annual Report 1999, Qatar Central Bank, Department of Economic Policies.
According to the report, the oil price averaged $17/B in FY1999-2000 compared to the oil price assumption of $10/B in the budget (MEES, 5 April, 1999). Expenditures were kept under control and only exceeded projected levels by 1.5%, contributing to the reduced deficit. The QCB notes that the main increase in expenditures occurred in the second and third chapters of the budget – recurrent costs – but remained lower than in previous years. Actual capital expenditure decreased compared to the budgeted level, demonstrating according to the QCB, “the strict adherence to the rationalization policy.”
For the current fiscal year, the QCB notes that “despite the increase in the oil prices to more than $28/B, the Ministry of Finance estimated a price of $15/B.” As a result, “public revenues were estimated at QR12,617mn, a decrease of 10.5% below the actual revenues of the previous year.” © Copyright MEES 2003.
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