DILE PHOTO by Abdul Basit © The Peninsula
Amir H H Sheikh Tamim bin Hamad Al Thani issued yesterday Law No. 26 of 2019 approving the State's general budget for the year 2020.
The law is effective as of January 1, 2020 and shall be published in the official gazette, QNA reported yesterday.
Qatar announced a surplus 2020 annual budget with a projected QR211bn in revenue and QR210.5bn expenditure. The revenue forecast is based on an oil price assumption of $55/barrel, the same level as in the 2019 budget.
The budgeted expenditure is the highest in the past five fiscal years, reflecting the country’s commitment to the completion of multiple development projects across multiple sectors, including those related to National Development Strategy 2018-2022. The budget is expected to achieve a surplus of QR500m.
The general budget adheres to the directives of H H the Amir aimed to increase the efficiency of public spending and provide all the necessary financial resources to achieve sustainable development within the framework of Qatar National Vision 2030, the Ministry of Finance said yesterday.
Expenditure in ‘major projects’ increased by 0.6 percent to QR90bn, compared with QR89.5bn in 2019. ‘Major projects’, which constitute almost 43 percent of total expenditure, represent the largest share of the overall budget. The allocation confirms Qatar’s continued commitment to providing sufficient financial allocations to complete the main projects in the health and education sectors, in addition to projects related to hosting the 2022 World Cup. According to the budget proposal, the projected launch of the Sharq Crossing Project, linking Ras Abu Aboud and West Bay, is expected to be completed within four years.
New projects worth QR11.5bn are projected to be awarded in 2020. The Public Works Authority (Ashghal) is responsible for the majority of those projects amounting to QR8.5bn in total. They include various infrastructure projects such as roads, sewerage networks, landscaping, rainwater drainage and other utility and maintenance services.
Allocations to ‘salaries and wages’ have increased to QR59bn, up by 3.3 percent, compared with QR57.1bn in 2019. This growth is a result of the budgeted headcount increase necessary to operate several recently completed projects, including schools, university facilities, and healthcare centers. Hiring requirements also increased in other sectors such as Transport, given the opening of the Doha Metro.
The allocation for the healthcare sector is QR22.6bn, representing around 11 percent of the total expenditure in 2020. Major projects to improve healthcare services include expansion in Hamad Medical Corporation facilities; establishment of several new healthcare centers. The education sector is allocated QR22.1bn, representing 10.5 percent of total expenditure. Major projects in the education sector currently underway include expansions in schools and other educational facilities network.
Infrastructure projects account for the largest share of the Major Project expenditure in the 2020 budget. There is a large number of planned initiatives for highway and internal roads development, expansions of the existing roads system, water and electricity networks, sewerage networks, and other public utilities. Funds are also allocated to finance housing projects for nationals and landscape development.
The main infrastructure projects under construction include the completion of highways including Sabah Al Ahmad Highway; Expansions in the water and electricity networks; Integrated infrastructure in existing urban areas; Developments in the sewerage networks in different regions of the country; and The launch of the Sharq Crossing Project, linking Ras Abu Aboud and Westbay, which is expected to be completed within 4 years.
Video: Sharq Crossing, which is expected to be completed within 4 years, was approved in Budget 2020
The 2020 budget includes allocations for the development of 13 new housing areas for nationals, to provide different facilities such as water, electricity and sewerage networks, and roads. The housing plan will cost QR12bn over 5 years. New housing areas will be handed over to nationals after the completion of the required infrastructure, according to the approved schedule.
