Qatar’s budget deficit is set to decline by 38.9 percent from $13bn (QR46.5bn) in 2016 to $7.8bn (QR28.4bn) in 2017 due to a rise in government revenues, according to an economic analysis by Qatar National Bank.
However, capital spending is expected to increase in 2017 and remain as the main driver of economic growth in the coming years, revealed The Peninsula Qatar.
The decision is aimed at supporting the state’s World Cup preparations and its intent on accelerating investment and infrastructure spending.
Revenues are expected to grow by 9.0 percent in 2017 compared to last year’s budget, while current expenditure is likely to decline by 6.6 percent.
Capital spending, which will surge by 3.2 percent, will be targeted at transportation and infrastructure (21.2 percent of total spending), health (12.3 percent) and education (10.4 percent).
Qatar’s Minister of Finance (MoF) said the government will agree to $13bn (QR46.1bn) worth of new contracts in 2017, which will focus on infrastructure, transportation and World Cup related projects.