The budget reflects Qatar's ongoing commitment to economic stability and diversification, particularly in light of fluctuating oil prices.
By maintaining a conservative revenue estimate, Qatar aims to safeguard its financial health against potential market volatility.
The increase in allocations for health and education underscores the government's focus on human capital development as a key component of its long-term strategy.
If oil prices remain stable or increase, Qatar may see an improvement in its revenue projections for future budgets.
Continued investment in strategic sectors could lead to enhanced economic resilience and growth, particularly in non-oil industries.
The approach to managing the budget deficit through debt instruments may indicate a cautious but proactive fiscal policy moving forward.
The Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, has approved the general budget for the fiscal year 2025, set to take effect on January 1, 2025. The total expected revenues for this budget amount to 197 billion Qatari riyals (approximately $54 billion), reflecting a decrease of 2.5% from the previous year's budget revenues. The budget is characterized by a conservative approach to estimating oil and gas revenues, with an average oil price of $60 per barrel adopted to enhance financial flexibility and ensure stability in spending.
The expected oil and gas revenues for 2025 are projected at 154 billion riyals ($42.2 billion), down from 159 billion riyals ($53.6 billion) in 2024, marking a 3.1% decrease. Non-oil revenue estimates remain unchanged at 43 billion riyals ($11.8 billion). Total expenditures for 2025 are set at 210.2 billion riyals ($57.6 billion), which is an increase of 4.6% compared to 2024. This results in an expected budget deficit of 13.2 billion riyals ($3.6 billion), which will be addressed through local and foreign debt instruments as necessary.
Significant allocations in the budget include 41.4 billion riyals ($11.35 billion) for health and education, representing 20% of the total budget. The budget also emphasizes strategic sectors such as trade, industry, research, tourism, digital transformation, and information technology, supporting Qatar's economic diversification and sustainable development goals. Salaries and wages allocations have increased by 5.5% to 67.5 billion riyals ($18.5 billion), with current and capital expenditures also seeing increases to facilitate ongoing strategic projects.
