Qatar’s budget for 2022 places adequate focus on three key sectors – infrastructure, education and health, which will see the development and expansion of civic amenities, educational institutions, hospitals and other healthcare facilities.
QR74bn has been allocated for major projects out of the total expenditures of the general budget for 2022, as the state continues to complete public projects in accordance with pre-prepared plans and strategies.
Infrastructure projects, the development of citizens’ lands, and public services development projects, including health and education, are given spending priority.
Nearly QR38bn (18.5% of the total budget) has been earmarked for these two sectors with health getting QR20bn and education QR17.8bn.
The budget approved by His Highness the Amir Sheikh Tamim bin Hamad al-Thani takes effect on January 1, 2022.
Qatar’s budget for 2022 has estimated expenditure at QR204.3bn, while total revenue will be QR196bn, up 22.4% on 2021.
The “expected deficit” has been estimated at QR8.3bn.
The next year’s budget has been based on an average oil price of $55 per barrel, up from $40 in 2021.
The oil revenue for 2022 has been estimated at QR154bn up 26.6% on the previous year.
Giving budget details in Doha recently, HE the Minister of Finance Ali bin Ahmed al-Kuwari said the higher total planned expenses (up 4.99% on 2021) of QR204.3bn during 2022, was mainly due to the temporary increase in operational expenses related to the World Cup hosting activities, which include security and operating costs for all related events to the FIFA World Cup Qatar 2022.
Al-Kuwari indicated that the “expected deficit” has been estimated at QR8.3bn, and said the Ministry of Finance “will work to cover it through available cash balances and issue of local and foreign debt instruments if the need arises.”
The remarkable recovery in the global energy prices has been reflected on the 2022 budget with the conservative average oil price taken as $55 per barrel, up from $40 in 2021.
This, al-Kuwari noted, “is due to the remarkable recovery in global energy prices, which still reflects the continued adoption of conservative estimates of revenues in order to maintain fiscal balance and limit the effects of oil price fluctuations on the performance of public finances.”
Already, the economic indicators provided by Planning and Statistics Authority of Qatar (PSA) have shown remarkable positive economic trends.
Qatar has recorded sustained trade surplus in the past few months which signifies strong economic recovery from the impact of Covid-19 pandemic.
Meanwhile, the Purchasing Managers’ Index (PMI) survey data from Qatar Financial Centre (QFC) scaled new heights in November, signalling a burgeoning non-energy private sector economy.
Both total activity and new business rose at the strongest rates since the survey began in April 2017, while a record rise in backlogged work suggested growing capacity pressures despite a further rise in employment.
Moreover, pricing power improved as average charges for goods and services increased at a series-record pace during November.
Growth rates for output and new work have accelerated continuously since June. Firms linked growth to healthy trading conditions, a lack of Covid restrictions and high levels of customer satisfaction as well as retention.
Thrust on key sectors in Qatar’s 2022 budget
