Budget surplus will help Qatar reduce public debt

Qatar’s efforts to reduce its public debt will gain further momentum as the country’s budget generated another surplus of QR2.6 billion in the second quarter, according to data from the Ministry of Finance.
In the first quarter, the budget recorded a surplus of QR2 billion.
In the second quarter of this year, total budget revenues amounted to QR59.9 billion and total expenditures to QR57.3 billion, generating a surplus of QR2.6 billion.
The Ministry of Finance reported that the average price of crude oil in the second quarter was $85 per barrel.
When presenting the budget earlier this year, the Finance Ministry assumed that the oil price in 2024 would be $60 per barrel.
“The surplus will be used to reduce public debt, therefore there is no cash surplus,” the Ministry noted.
Previously, the state budget estimated total annual revenues at QR202 billion and expenditures at QR200.9 billion for this year.
Although the 2024 budget initially projects a small surplus, given Qatar’s commitment to settle a national debt of around QR7.3 billion next year, the Ministry of Finance has estimated a deficit of around QR6.2 billion.
In the budget, Qatar took a more conservative approach, assuming an oil price of $60 per barrel in 2024 instead of $65 per barrel in 2023, taking into account estimates by international institutions.
As research firm FocusEconomics said in its previous report, the country’s public debt is estimated to decline steadily from this year to 2028.
FocusEconomics estimates that public debt (as a percentage of GDP) this year will be 39.7, 37.1 (2025), 36.3 (2026), 33.7 (2027) and 32.7 (2028).
Qatar’s budget balance (as a percentage of GDP) is estimated at 4.8 this year, 4.2 in 2025, 5.4 in 2026, 5.9 in 2027 and 6.5 in 2028.
The country’s current account balance (in dollars) is estimated to be $35.6 billion this year, $35.9 billion in 2025, $37.7 billion in 2026, $43.9 billion in 2027 and $41 billion in 2028.
The current account balance (as a percentage of GDP) is estimated at 15.3 this year, 14.8 in 2025, 14.2 in 2026, 15.2 in 2027 and 13.4 in 2028.
The unemployment rate (as a percentage of the economically active population) will remain at just 0.2 this year and in 2025, and will reach 0.1 by 2028.
According to researchers, Qatar’s gross domestic product is expected to exceed $300 billion by 2028, and this year’s GDP is estimated at $232 billion.
Meanwhile, the country’s 2024 general budget continues to focus on achieving QNV 2030 goals related to human capital development, with particular emphasis on the health and education sectors.
Expenditures on two key sectors account for 20% of the total budget.
This underlines Qatar’s commitment to the development of its people and the fact that the development of human capital is crucial to progress in all sectors, both economic and social.
In next year’s budget, funds allocated to the communications and information technology sector will increase by 200% compared to 2023.
The doubling of spending on the ICT sector compared to last year’s budget reaffirms Qatar’s commitment to promoting an economy based on knowledge and innovation, while promoting investment in these key sectors.