DOHA: A law passed yesterday extends the current state budget until 2015-end, and stipulates that from next year the financial year shall follow the Gregorian calendar.
The present budget was to lapse on March 31 as Qatar had been following an April-to-March fiscal year.
The budget year is being changed to January-December to seek compatibility with the financial year of private companies.
Also, global monetary and banking institutions follow the Gregorian calendar.
For the extended 2014-15 budget, the finance minister will issue a decision. The new law, which has already become effective, gives immense powers to the finance ministry. Law Number 2 of 2015 issued by Emir H H Sheikh Tamim bin Hamad Al Thani vests the authority in the finance ministry to prioritise development projects and set standards for their prioritisation if state entities responsible for identifying and implementing those projects fail to do so, or even if they prioritise and the ministry doesn’t agree.
The law asks the finance minister to issue the bye-laws and until such time existing rules will apply. The law has seven chapters and 45 articles and another seven articles talk of the help the finance ministry may need from entities like the Supreme Council of Economic and Investment Affairs and other ministries.
The Finance Ministry shall prepare and implement the state budgets in line with the National Development Strategy and Qatar National Vision 2030, and tackle financial crisis, if any. The Ministry, in coordination with the Qatar Central Bank, shall specify mechanisms to list debt instruments in local or foreign capital markets or through any other channels, if the state needs funds. The state can also ink deals with other parties. Similarly, the state can give away loans and subscribe to debt instruments like bonds and sukuks.
Finance Minister H E Ali Shareef Al Emadi told QNA the new law unifies the legal framework for the state’s fiscal policy.
There were four laws regulating public money and fiscal policies and now there is only one.
Qatar will continue with all development projects and follow the set timetable. Absolutely no changes will be made. The switch to the new system will be smooth, he said.
The Peninsula
