Qatar expects to earn $53.8 billion in revenue for its 2025 budget but will have a $3.6 billion shortfall
Qatar expects to earn $53.8 billion (QAR 197 billion) in revenue and spend $57.4 billion (QAR 210.2 billion) in 2025, resulting in a $3.61 billion (QAR 13.2 billion) deficit.
Budget Overview
Qatar’s revenue for 2025 is expected to be 2.5% lower than this year’s revenue, according to the state-run Qatar News Agency (QNA), quoting Finance Minister Ali bin Ahmed Al Kuwari.
The minister explained that Qatar uses a cautious method to estimate oil and gas income, assuming an average oil price of $60 per barrel. This approach is meant to keep finances flexible and maintain stable spending.
For non-oil revenue, the estimate for 2025 is $11.8 billion (QAR 43 billion), which is the same as this year.
Key Point
Oil and gas revenue for 2025 is expected to be QAR 154 billion ($42.1 billion), which is 3.1% lower than the QAR 159 billion ($43.5 billion) planned in the 2024 budget, said Al Kuwari.
Budget Spending
Al Kuwari shared that next year’s budget is set at $57.4 billion (QAR 210.2 billion), a 4.6% increase from 2024.
Around $11.3 billion (QAR 41.4 billion), or 20% of the total budget, is allocated to health and education. Al Kuwari emphasized this reflects Qatar’s focus on developing its people and improving public services.
Other key sectors like trade, research, tourism, technology, and digital transformation will also receive significant funding to promote economic growth and sustainability.
Salaries and wages are expected to grow by 5.5% in 2025, reaching $18.5 billion (QAR 67.5 billion). Overall spending on current expenses will rise by 6.3%, while spending on capital projects will increase by 7.7%.
Capital project funding will go up by 1.4% to ensure strategic and developmental projects continue as planned.
If needed, Qatar will cover its budget deficit using local or international loans.
Economic Growth
Qatar’s economy is recovering after slowing down following the World Cup. The International Monetary Fund (IMF) predicts the country’s economy will grow by 2% in 2024-25, driven by a rise in liquefied natural gas (LNG) production and improvements in economic policies.
After strong growth of 4.2% in 2022, Qatar’s economic growth slowed to 1.2% in 2023. However, there are now signs of a steady recovery.
Inflation in Qatar is also expected to drop to 1% in 2024, helped by the central bank’s tighter monetary policy.
Published: 13th December 2024
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