Qatar’s continued focus on key health, education sectors reflected in budget for fiscal 2023

Qatar’s continued focus on the key health and education sectors is reflected in the budget for fiscal 2023, which was recently approved by His Highness the Amir, Sheikh Tamim bin Hamad al-Thani.
The health sector has been allocated QR21.1bn, which represents 11% of the total expenditures, while QR18.1bn has been set apart for the education sector, nearly 9% of the total expenditures.
The budget has set spending at QR199bn with total revenue of QR228bn next year, estimating a surplus of QR29bn.
Qatar’s oil revenue is expected to be QR186bn and non-oil revenue QR42bn in 2023.
Higher revenue projected for next year (QR228bn) has been mainly due to the adoption of an average oil price of $65 per barrel for fiscal 2023 in place of $55 per barrel in 2022.
The conservative figure of $65 per barrel on which the 2023 budget has been based is part of the strategy of the Ministry of Finance to allocate financial resources towards existing commitments expected during the year to fund National Development Strategy (NDS) programmes and projects, HE the Minister of Finance Ali bin Ahmed al-Kuwari said at a media event in Doha recently.
Qatar will continue high spending on projects supporting the local economy, al-Kuwari said and noted some 22 new projects will be implemented in 2023, at a total cost of QR9.8bn.
Addressing editors of various Qatari media outlets al-Kuwari said the continued high spending on public projects is in line with the state’s plans to complete and finalise infrastructure projects, especially those related to existing and new lands of citizens as well as projects supporting the local economy.
As part of efforts to ensure a dignified life and advanced standard of living for Qatari citizens, an increase in salaries by QR4bn (compared to QR62.6bn) has been set in 2023 budget. This is based on a directive by HH the Amir to raise pension for retirees.
Qatar’s projected inflation of 3.3% in 2023 will be much lower than the estimated global inflation of 6.5% in 2023. The country has taken measures to maintain low inflation rates.
These include capping fuel prices, subsiding food and beverage products and exempting imported products from custom duties.
Al-Kuwari noted that Qatar’s public debt fell to 44.5% of the country’s GDP this year, from 58% in 2021.
This, he said, is as a result of the state’s commitment to paying due external debt, in addition to the growth in GDP at current prices.
The rise in energy prices and Qatar’s conservative fiscal policy (spending control and reducing levels of public debt, especially external debt) has improved the state’s credit rating.
Driven by higher LNG revenues from the North Field expansion, Qatar expects to achieve a double-digit growth by 2027, the minister noted.
The multi-billion dollar North Field Expansion, the largest LNG development in global history, will generate substantial revenues for Qatar and hugely contribute to the country’s GDP.
The North Field expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77 mtpy per year to 126 mtpy by 2027.