DOHA: Minister of Finance HE Ali bin Ahmed Al Kuwari revealed expectations of a decrease in the inflation rate in Qatar during the next fiscal year, compared to the current fiscal year, based on data from the general budget of Qatar for the year 2024.

He said in a press conference on Thursday regarding the new state budget that the inflation that Qatar witnessed was temporary, and was linked to a specific period and specific reasons, such as the rise in food prices, indicating that the inflation rate began to return to its normal levels, and is now considered the best in the region, and among the best in the world.

He added that the new budget adopted a conservative approach in estimating oil prices, in line with international best practices, pointing out that to develop a strong financial plan capable of withstanding the fluctuations in energy markets, a price of $60 per barrel was approved, instead of $65 in the 2023budget, which leads to a decrease in the estimate of total revenues in the fiscal year 2024 budget by 11.4 percent, to reach QR202.0bn.

He pointed out that the total spending in the 2024 budget amounts to QR200.9bn(approximately US$55.1bn), an increase of 1 percent compared to the current year’s budget.

The Minister of Finance added that the expected oil and gas revenues for next year amount to QR159bn, compared to QR186bn in the 2023 budget, which represents a decrease of 14.5 percent. He expected that non-oil revenues would reach QR43bn, with an increased rate estimated at 2.4 percent compared to the current fiscal year budget.

In this context, he stressed that the focus will be on the non-oil sector, noting that the third national development strategy focused on this aspect, and set a goal to reach the aspired growth in this sector by the year 2030.

Minister Al Kuwari explained that with total expenditures remaining at their levels, this will result in a surplus of QR1.1bn, compared to the 2023 budget estimates of a surplus of QR29bn, adding that the state intends to pay off approximately QR7.3bnof debt, which is the cash deficit at the scheduled oil price is estimated at approximately QR6.2bn.

He stressed the importance of focusing on economic financial sustainability, and avoiding the consumer economy, pointing to the growth of the industrial sector by 4.3 percent in the first half of this year, and the success of the tourism sector in compensating for the limited decline in the construction sector, as Qatar recorded a record number of tourists. It reached 3.54 million visitors from the beginning of the year until November.

He pointed to the financial discipline praised by international financial institutions, which is reflected in the improvement of the country’s credit rating, which is considered the best in the region, and among the best in the world.

He pointed out the importance of taxes as an important element in diversifying the country’s revenues and managing the economy in times of crisis.

However, he stressed that the conditions are not suitable for imposing new taxes, pointing out that taxes imposed on goods that are harmful to human health, such as sweetened soft drinks and others. It comes to protect people's health, not to collect taxes.

The Minister of Finance affirmed the state’s commitment to strengthening the strategic partnership between the public and private sectors, noting that several opportunities were presented to the private sector to contribute to the implementation of national projects, including the development of government schools, and the Al Wakra and Al Wukair sanitation projects.

In this context, he pointed out the study of other opportunities in coordination with the Ministry of Commerce and Industry to increase the private sector’s contribution to the implementation of the third strategic plan projects, noting at the same time the importance of the local content programme, which gives priority to winning tenders for local companies that use local products and content and employ Qatari citizens.

The Minister of Finance explained that there is an increase in spending on salaries and wages.Allocations for salaries and wages in the 2024 budget increased by QR1.5bn from 2023, reaching QR64bn, which indicates an increase in employment rates.

He pointed out that the Ministry of Finance allocated QR500mn riyals to enhance national job opportunities and empower human resources in the labour market, pointing out that nearly 3,000 Qataris were employed from January to September of this year.

The minister revealed an increase in the allocations for the health and education sectors in the 2024 budget for the second year in a row, announcing that the two sectors would account for 20 percent of the total new budget, in line with the state’s continued focus on investing in them.

In this context, the Minister of Finance revealed spending of 11 percent in the health sector, announcing that the largest portion of it would be allocated to developing the National Cancer Hospital, establishing a psychiatric hospital dedicated to treating mental health problems and providing specialized care, and renovating and redeveloping structures within the Medical City, including Hamad Medical Corporation hospital buildings, and the establishment of health care centres in the Umm Ghuwailina and Khalifa City regions.

The allocations for the education sector in the new budget amount to 9 percent, according to what he announced during the press conference, and include modifications and expansions in 16 existing schools, to strengthen its infrastructure and academic facilities, increasethe allocation of education vouchers for students with disabilities, and accommodating the evolving needs of students and teachers, the state has also allocated resources to construct buildings dedicated to the faculties of medicine and science at Qatar University.

Regarding public debt, the Minister of Finance indicated its decline from 58.4 percent in 2021 to 42.5 percent of GDP in 2022, and he expected it to continue to decline to 39.4 percent in 2023 and 37.4 percent in 2024, thanks to the state’s payment of amounts owed. of external debt, in addition to the growth in gross domestic product at current prices. The decrease in external public debt has contributed to improving the country’s credit rating.

Regarding the country’s sovereign rating, the minister pointed to the positive future outlook of the credit rating agencies for Qatar, pointing out that Fitch raised the country’s future outlook from stable to positive during the current year, and Moody’s affirmed its positive future outlook, and Standard Agency maintained its positive future outlook. & Poor's issued the country's credit rating as is (AA) with a stable outlook.

He stressed that this positive credit rating of the country confirms the strength and flexibility of the local economy, in addition to the financial stability witnessed by the country, which increases the country’s attractiveness for foreign investments.

The 2024 budget is based on four pillars, including allocating the necessary resources for the third national development strategy, raising the efficiency of spending, setting targets to reach them through the medium-term budget, allocating the necessary financial resources to meet the state’s spending needs, committing to financing plans, and focusing on supporting diversification efforts. economic, and strengthening partnerships with the private sector.

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