Qatar Approves 2024 Budget Cut: $55.4 Billion Revenues, $55.1 Billion Spending With Education and Health Priorities
Qatar has approved a $55.1 billion budget spending plan for 2024 as it prioritises education and health projects in the year ahead. The expected revenue forecasts have been slashed by more than 11 percent amid an expected decline in oil revenue.
The non-oil sector in Qatar is expected to increase, with revenue of around $11.8 billion.
Minister of Finance Ali bin Ahmed Al Kuwari announced that the total revenues expected in the general budget of the State of Qatar for the fiscal year 2024, issued by Amir Sheikh Tamim bin Hamad Al-Thani earlier Wednesday, amount to QR202bn ($55.4bn), an 11.4 percent decrease compared to the 2023 budget total revenues estimates.
In a statement on Wednesday, the Minister of Finance attributed the decrease in revenues basically to the adoption of an average oil price of $60 per barrel for 2024 instead of $65 per barrel in 2023, based on the international institution estimates for oil prices in 2024 and the conservative estimates for oil and gas revenues.
The Minister of Finance explained that estimates of total oil and gas revenues for 2024 amount to QR159bn ($43.6bn), compared to QR186bn ($51bn) in 2023, a 14.5 percent decrease, indicating that the estimates of non-oil revenues for 2024 amount to QR43bn ($11.8bn), an increase of approximately 2.4 percent compared to the budget for the fiscal year 2023.
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HH the Amir Approves State's General Budget for Fiscal Year 2024
Minister of Finance: The general budget continues to focus on achieving the goals of #QatarNationalVision 2030#QNA #Economyhttps://t.co/fS9gHiFAFq pic.twitter.com/FHcFeriEic
He added that said that expenditures in the fiscal year 2024 budget sees an increase of 1 per cent from 2023 to reach QR200.9bn ($55.1bn), due to a rise in the allocations for salaries and wages increased in the 2024 budget by QR1.5bn ($411.6m), a 2.4 per cent increase from 2023 to reach QR64bn ($17.6bn).
Allocations for both current expenditures and secondary capital expenditures also increased by 6.4 per cent and 27.5 per cent respectively, compared to 2023.
Major capital expenditures budget decreased by nearly 8.3 per cent compared to the 2023 budget given the completion of many vital economic projects and projects related to the infrastructure plan.
The Minister of Finance said that the general budget continues to focus on achieving the goals of Qatar National Vision 2030 related to the development of human capital by focusing on the health and education sectors.
Allocations for the two sectors constitute 20 per cent of the total budget.
There is a further focus on goals related to diversifying the local economy and enhancing its competitiveness.
Allocations for the communications and information technology sector have been doubled compared to 2023.
Minister of Finance Ali bin Ahmed Al Kuwari noted Qatar’s commitment to pay the equivalent of approximately QR7.3bn ($2.3bn) of public debt dues in 2024, which makes the cash deficit for 2024 at the above-mentioned oil price ($60 per barrel) estimated at about QR6.2bn ($1.7bn).
This can be covered from the surplus of the year 2023 in addition to using domestic and external debt instruments as needed.
