As Amir H H Sheikh Tamim bin Hamad Al Thani issued Law No. 26 of 2019, the State Budget for the year 2020 was approved and published, which will be effective from January 1, 2020. The budget projects QR211bn in revenue while the expected expenditure is fixed at QR210.5bn showing a surplus of an impressive QR500m. The revenue forecast is based on an oil revenue assumption of $55 a barrel, the same as in the 2019 budget.
Next year’s budget projects the highest expenditure in the last five years, which reflects the country’s keenness in the completion of development projects across every sector with a special focus on the National Development Strategy 2018-2022. The Ministry of Finance said that 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.
According the main budget allocations, ‘Major Projects’ constitutes almost 43 percent of the total expenditure, for which QR90bn is earmarked, showing an increase of 0.5 percent compared to the QR89.5bn in 2019. It is an affirmation of Qatar’s determination to provide sufficient financial support to complete the major projects in health and education, in addition to projects related to the hosting of the eagerly awaited 2022 World Cup.
One of the major highlight of the budget is the launch of the Sharq Crossing Project connecting Hamad International Airport to the iconic cultural village, Katara, and West Bay. The one-of-a-kind project, expected to be completed in four years, will be yet another landmark development adding one more feather to the cap of Qatar’s achievements.
Heathcare and education have always been a priority for Qatar and as expected, the 2020 budget also allocates handsome provisions for these two vital sectors. While a whopping QR22.6bn is allocated for healthcare, education sector is allocated QR22.1bn. An allocation of QR28.9bn is projected for Municipal and Environment sector, which shows the state’s commitment to the overall development of the urban facilities and infrastructure taking into consideration the increasing importance of sustainable development and protection of the environment.
In a nutshell, the 2020 General Budget is a testament to the state’s affirmation of making optimal use of the available resources to raise the productive efficiency focused on fulfilling the aspirations of the people through spurting food security projects, health and environment, and infrastructure. The new budget will be instrumental in the growth of economic, industrial and logistical zones which will in turn act as catalysts in the economic diversification and promotion of growth.
