The first budget approved by Emir Sheikh Tamim bin Hamad Al Thani will hike spending to an all-time high by increasing compensation for government employees and ramping up construction ahead of the 2022 World Cup. According to state news agency QNA, Qatar plans to spend nearly $60 billion while bringing in revenue
The first budget approved by Emir Sheikh Tamim bin Hamad Al Thani will hike spending to an all-time high by increasing compensation for government employees and ramping up construction ahead of the 2022 World Cup.
According to state news agency QNA, Qatar plans to spend nearly $60 billion while bringing in revenues of $62 billion.
The 2014-2015 financial plan also includes a promise to construct 85 new schools over the next year and a half.
The move should mitigate the strain on Qatar's overburdened education system, which is struggling to keep up with the country's rapid population growth and is hindering some companies in recruitment of expat workers.
The promise of new schools is one of the few specific details contained in QNA's otherwise high-level summary of the budget, which says expenditures are projected to rise 3.7%.
As in past years, revenues figures are projected based on conservative oil prices. This year's budget assumes oil will trade for $65 a barrel, even though the current price is more than $100.
The 2014-15 budget nevertheless calls for a 16.8% increase to $24.03 billion in spending on major projects (top 3 accounting 54% of spending: infrastructure, education, health care), “enough funds for … the execution of mega infrastructure and transport projects such as the rail projects related to the preparation for hosting the 2022 World Cup,” Finance Minister Ali Sharif Al Emadi said.
He noted “any expansion in spending must be accompanied by a proactive management in order to avoid any pressure from inflation.”