Qatar predicts budget deficit of $1.6bn

Qatar is predicting a deficit in its budget for 2009-2010 - its first since 2001 - due to the falling oil price.

The Gulf state insisted, however, it was forging ahead with huge investment in infrastructure development projects in line with its 2030 vision.

The budget is based on an oil price of $40 per barrel and the deficit has been estimated at QR5.8bn ($1.6bn).

Revenues estimated are QR88.7bn, down from QR103.3bn in the previous financial year when crude rates reached record highs of $147 a barrel.

Spending has been estimated at QR94.5bn, leaving a deficit of QR5.8bn.

At least QR37.9bn has been allocated for strategic infrastructure projects in some key areas like health, education and human resource development.

Qatar News Agency (QNA), giving details of the new budgetary estimates, quoted the Minister of Economy and Finance, Yousuf Hussein Kamal as saying the tempo of social, economic and human resource development and the focus on environmental upgrade will be maintained in the new state budget.

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