Rising
gas revenues will see Qatar’s fiscal surplus for 2010-2011 rise to a record
10.5 percent of gross domestic product (GDP), according to official estimates.
“Qatar’s
budget is expected to record a surplus of around 10.5 percent in the current
fiscal year,” the Abu Dhabi-based Arab Monetary Fund (AMF) is quoted as saying
in a report by Emirates 24/7 on Wednesday.
However,
the AMF added that the surplus “will remain lower than the surplus recorded in
the previous fiscal year…this is because of high spending as part of the
country’s counter-crisis fiscal expansion measures.”
The
figures showed that Qatar assumed a surplus of QR9.6bn ($2.66bn) for the
current fiscal year starting on April 1.
Expenditure
was estimated at QR117.9bn ($32.37bn) and revenue, mainly from oil and gas
revenue, is estimated to be QR127.5bn ($35.01bn).
In
the 2009-2010 fiscal year, Qatar had expected to record a deficit of QR5.8bn
($1.59bn) but surging gas revenues saw it record a surplus of QR46.3bn
($12.71bn).
Last
month, the Qatari finance minister said government spending in the 2010-2011
financial year will at least match the $32bn budgeted for 2010/11.
“Next
year’s budget will be no less than this year’s,” Finance Minister Youssef
Kamal told an investment forum in November.
“Forty
percent of the budget through 2016 will be allocated for infrastructure
projects.”
Kamal
added that the country’s debts were not more than 30 percent of gross domestic
product, in line with International Monetary Fund forecasts for government debt
of 27.2 percent of GDP this year, decreasing from 36.7 percent in 2009.
Kuwaiti-based
Global Investment House put the expected surplus even higher for 2010-2011 and
estimated that it could rise to as high a 13.3 percent of GDP.
The
surplus surge will help the energy rich Gulf state fund its $57bn expenditure
plans ahead of its hosting of the FIFA World Cup in 2022.
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