Qatar generated a total budget surplus of QR4.9bn in the three quarters of 2021, the Ministry of Finance said Monday.
The budget surplus in the third quarter amounted to QR0.9bn driven by higher energy prices, the Ministry of Finance said in its ‘Public Budget Statement’ for the third quarter (Q3) of 2021.
Total revenue reached QR47bn in the third quarter driven by “higher-than-budgeted” oil prices and corresponded to 29.3% of total 2021 Budget.
Similar to the previous quarters, revenue continued to outperform the state budget as oil prices remained higher than the conservative $40 per barrel budget assumption.
On the other hand, a total public expenditure of QR46.1bn has been recorded in Q3, 2021, which the Ministry of Finance said “is largely in line with the budget.”
Oil price averaged $73.2 per barrel in the third quarter, the Ministry of Finance said.
On Qatar’s fiscal performance in the third quarter, the Ministry of Finance noted the third quarter “reflects the overall pattern of expenditure stability.”
Total public expenditure amounted to QR46.1bn, representing a marginal decline of 0.3% compared with the previous quarter. On the other side, total revenue reached QR47bn in the third quarter, which corresponds to a decline of 6.2% in comparison with the second quarter.
This was driven by the 70.4% decline in non-hydrocarbon revenue compared to Q2,2021. Stable expenditure and lower revenue during the third quarter of 2021 resulted in a lower surplus compared to the previous quarter, the Ministry of Finance said.
Total revenue for Q3,2021 reached QR47bn, which represents a decrease of 6.2% compared to the previous quarter. This was driven by the significant drop in non-hydrocarbon revenue since the substantial share of budgeted non-oil revenue for 2021 was achieved in Q2,2021 due to the timing of corporate income tax collection.
Despite the anticipated drop in non-oil revenue for Q3-2021, total revenue for the third quarter accounted for 29.3% of the 2021 budget.
The total oil and gas revenue in Q3 amounted to QR41.2bn, which represents an increase of 34.6% compared to the same period last year supported by higher oil prices.
Non-oil revenue for Q3,2021 amounted to QR5.7bn, which represents 14.9% of the 2021 budget. Total non-oil revenue year-to-date reached QR30.5bn and the expected non-oil revenue for the fourth quarter of 2021 stands at around QR6.5bn, leaving total non-oil revenue for the year at QR37bn, the Ministry of Finance said.
Total public expenditure during the third quarter of 2021 remained relatively stable and amounted to QR46.1bn, representing a slight decline of 0.3% compared to the previous quarter.
Total public expenditure for Q3,2021 accounted for 23.7% of the 2021 budget.