Business Editor
Newly-awarded projects during the second quarter of 2021 amounted to over QR2.7bn, the Ministry of Finance said yesterday.
Expenditure on major projects during the second quarter of this year reached QR15bn, representing 20.8% of 2021 budget, Ministry of Finance said.
This, however, showed a marginal decline of 0.4% compared to the previous quarter. Nevertheless, larger payments are anticipated in the second half of the year, the Ministry of Finance said.
In terms of awarded projects during the second quarter of 2021, infrastructure, roads, and parks totalled QR1.72bn and sewer and drainage QR314.7mn.
According to the Ministry of Finance, projects to be completed in 2021 are Food Security, Lusail Light Rail Transit, Doha Old Port, and Sabah Al-Ahmad Corridor.
Total expenditure for Q2, 2021 amounted to QR46.2bn and represents 23.7% of 2021 budget. Compared to the previous quarter, total capital expenditure remained relatively stable, while total current expenditure increased by 4.5% leading to an increase of 2.6% in total expenditure .
Chapter I “Salaries and Wages” increased by 5.1% compared to the previous quarter. This is mainly due to advance payments to some sectors, the Ministry of Finance noted.
Chapter II “Current Expenditure” increased by 3.9% compared to the previous quarter, which is primarily the result of the higher aggregated interest payments in the second quarter on domestic and external debt.
According to the Planning and Statistics Authority (PSA), Qatar’s real GDP in Q1-2021 contracted by 2.5% relative to Q1, 2020. The year-on-year decline was mainly driven by the transportation and storage sector, and hydrocarbons.
The transportation and storage sector declined on an annual basis by 20.8% primarily due to the decline in airline activity. The pandemic has also adversely impacted the construction sector as supply chains were disrupted with globally imposed restrictions.
Consequently, non-hydrocarbon real GDP declined by 2.7% in Q1, 2021 compared to Q1, 2020. Moreover, the hydrocarbon sector declined by 2.3% over the same period due to the decline in global economic activity and deteriorating energy demand.
Nevertheless, the economy is expected to recover from the effects of the Covid-19 pandemic in 2021 with an anticipated real GDP growth of 2.2%, the Ministry of Finance noted.
The advancement in the vaccination programme, the gradual lifting of restrictions, and the rapid recovery in oil demand are expected to put the economy on a growth trajectory for the remaining quarters of 2021, the Ministry of Finance said.