DOHA: Qatar hopes to earmark more than QR200bn (about $55bn) for public spending in its budgetary estimates for the current fiscal year (2013-14) that begins from today and lasts until March 31, 2014.
The budgetary outlay for spending in the previous budget (2012-13) was QR178bn ($48.76bn).
The current budget is to be based on an oil price of $65 per barrel — unchanged from the previous financial year.
The conservative crude price of $65 per barrel is to make sure that the budgetary outlay in the current budget for spending on infrastructure development projects is covered. Dr Ibrahim Al Ibrahim (Pictured), Economic Advisor at the Emiri Diwan, told local Arabic daily
Al Arab that increased allocations for public spending in successive annual budgets were to ensure the growth of the non-energy sector and create a balance in the state’s revenue sources.
Increased spending on infrastructure development in every budget year after year reflects a welcome shift in Qatar’s economic policy and will make the economy more reliant on the non-hydrocarbons sector.
It will eventually lead to a fair reduction in Qatar’s dependence on oil and gas and bolster the non-energy sector, Al
Ibrahim said. “We are making the change…The impact of such spending will be visible over the long-term…You will see the benefits in future,” he added when told that the private sector had been complaining that there was so much talk of mega projects being launched but nothing was being felt on the ground.
Asked if the projects for the coveted FIFA 2022 World Cup could be financed with the revenues during the current fiscal year, the Adviser said revenues generated from the energy and industry sectors should suffice to implement those ventures.
About the existing moratorium on gas production, he said feasibility studies were being conducted and a decision about whether to increase the production (of liquefied natural gas—LNG) or not will be taken only in 2015.
As for crude production, Al Ibrahim said that could be raised as and when it is felt necessary.
