Qatar Economic Review 2006(September) - QNB

2005/06 BudgetPreliminary data on government revenues and expenditures released recently by the Ministry of Financefor the fiscal year 2005/06, shows that total revenues continue on an upward trend and increased by11.4% to reach QR 61,531 million, while total expenditures increased by 31.5% to reach QR 46,817million, resulting in a large surplus of QR 14,714 million. Oil prices recorded an increase of 44.7% duringthe fiscal year 2005/06 and averaged $55.7 p/b, compared to an average of $38.5 p/b during the fiscalyear 2004/05. Oil production averaged 786,000 bpd during the fiscal year 2005/06.2006/07 BudgetThe 2006/07 State Budget that was unveiled in April 2006 was the largest in Qatar’s history and forecastsa surplus of QR 2.3 billion. This is the second fiscal year in which the State Budget shows a surplus, andis primarily indicative of the continued strength and outlook for the oil, gas and petrochemical sectors.The 2006/07 Budget forecasts total revenues to increase by 49.6% to reach QR 56.9 billion, with totalexpenditures expected to increase by 44.4% to reach QR 54.6 billion. The oil price assumption for the2006/07 Budget is $36 p/b, compared to $27 p/b in the previous budget estimates.The 2006/07 State Budget allocations for major public projects has increased by 70.5% toreach QR 20.0 billion, compared to QR 11.7 billion in the previous budget (Table 9.2). The Stateis committed to keeping on track with allocations for major public projects, and as such hasestablished a stabilisation fund in this regard.Table 9.2The State BudgetAllocations for MajorPublic ProjectsDetails of Budget Allocations(QR Million)2005/06Budget2006/07Budget% ChangePublic Services and Infrastructure:(includes roads and transportation, land acquisition & reform,water and electricity, sewage works, development of new lightand medium industrial area and other projects).6,710 10,500 56.5%Education and Youth Welfare: 1,804 5,700 215.9%Social and Health Care: 3,215 3,800 18.2%Total 11,729 20,000 70.5%Source: Ministry of Finance.PUBLIC FINANCE 46