Youssuf Hussein Kamal, the Minister of Economy and Finance of Qatar, has stated that the 2011-12 budget has the maximum allocation in the gulf nation s economic history. The budget is also supposed to help Qatar take the right initiatives to attain sustainable economic growth in the years ahead.
Qatar Budget 2011-12: Highlights and Possible Impact
As per the 22nd Emiri decision issued by Sheikh Tamim bin Hamad Al Thani, the Heir Apparent and Deputy Emir of Qatar, the 2011-12 general budget will be effective from 1st April 2011 to 31st March 2012.
The budget is not only the biggest but also the finest in Qatar s economic history.
The revenues estimated from the 2011-12 budget are almost 27 percent more than the 2010-11 earnings.
Aggregate expenses will go up by approximately 19 percent in 2011-12 from the previous fiscal.
As a result of increased public expenditure and revenues in the 2011-12 fiscal the government will earn a surplus amounting to almost 22 billion Qatari Riyals.
Although the price of each barrel of oil has remained at 55 US dollars but that has not stopped the growth of Qatar s economy.
Qatar is expected to see consistent GDP growth because of increased investments and LNG production.
Much of the addition to its LNG production has happened owing to the various developmental policies taken for this sector.
While framing the economic policies of the 2011-12 Qatar budget economic initiatives such as the National Development Strategy 2011-16 and Qatar National Vision 2030 were considered as well.
This is evident from the fact that 41% of the budgetary allocation is for public projects such as the New Doha Port, completing the New Doha International Airport and improving the nationwide sanitation system. It is expected that this infrastructural expenditure of 16 billion dollars will help with economic growth.
Sectors such as education and health will be given top priority in the upcoming budget.
The real GDP will increase by 17.5 percent in 2011 fiscal but it will come down to 5.5% in the upcoming fiscal.
The dividend payments for 2011-12 fiscal will be better than the 2010-11 fiscal. It is expected that the increased production and prices of hydrocarbon products will help with this.
The government has already upped the pensions and salaries of the soldiers and public sector employees who are citizens of Qatar by 50 to 120%. Qataris make up 58% of the workforce at the various governmental departments. According to basic estimates the yearly salaries and wages bill, this means an increase of 2 billion dollars.
The 2011-12 budget was initially expected to spend $6.9 billion but almost one billion dollars may now be added to meet the expenses.
It is expected that budgetary surplus will equal 8 percent of the GDP in the 2011-12 fiscal.
Qatar Budget 2011-12: Facts
Qatar has been able to increase its budgetary expenses for 2011-12 in spite of the present global economic condition. As per the IMF, Qatar is on the right track and will soon start to perform better than the GCC members.