Qatar records $713mn budget surplus in second quarter

DUBAI: Qatar achieved a budget surplus of 2.6 billion riyals ($713.31 million) in the second quarter of 2024, Finance Ministry reported.

The surplus follows a prior quarter in which the Gulf state recorded a surplus of 2 billion riyals. Despite this positive fiscal outcome, the report indicates a decrease in total revenue by 12.4 per cent year-on-year, amounting to 59.9 billion riyals.

The decline in revenue is attributed to diminishing demand, which has adversely affected international gas prices, a critical component of Qatar’s economy.

Government spending during this period also experienced a modest contraction, falling nearly 2% to 57.3 billion riyals compared to the previous year.

Reducing public debt

The Finance Ministry noted that the entirety of the surplus would be allocated toward reducing public debt, with no portion retained as cash surplus.

The strategic decision underscores Qatar’s commitment to maintaining fiscal prudence amidst fluctuating oil and gas revenues, which remain the backbone of its economy.

Looking ahead, Qatar anticipates a challenging fiscal landscape, forecasting a 14.5 per cent decline in oil and gas revenue for 2024. In contrast, non-oil revenue is expected to rise by approximately 2.4 per cent. This mixed outlook reflects the ongoing efforts by the Qatari government to diversify its economic base and reduce reliance on hydrocarbons. However, the nation remains significantly dependent on gas revenue as a primary source of government income.