(MENAFN- Gulf Times) Qatar's budget for 2016 has made higher allocation for major projects and a significant outlay for infrastructure, health and education sectors, as it projects a revenue of QR156bn and an expenditure of QR202.5bn.
HH the Emir Sheikh Tamim bin Hamad al-Thani has issued Law Number (26) of 2015, endorsing the State Budget for the fiscal 2016. The budget would take effect on January 1, 2016, Qatar News Agency said on Wednesday.
The budget figures indicate that Qatar might post a deficit of QR46.5bn in 2016, which HE the Minister of Finance Ali Sherif al-Emadi said would be financed through "debt instruments" in the local and international markets.
The decline in projected revenues is due to a reduction in the oil price assumption to $48 a barrel compared with $65 in the previous fiscal year.
Last year, revenue totalling QR226bn and an expenditure of QR218.4bn were budgeted.
Al-Emadi emphasised that the State Budget for 2016 demonstrated the government's "keenness on sustainable development".
In a statement, the minister said the allocation for major projects in Qatar would go up by QR3.3bn to QR90.8bn in the fiscal 2016.
This, he said, would ensure the "implementation of development projects" based on the "planned schedule".
A significant outlay (QR90.9bn) has been made for the infrastructure, health and education sectors, which represents 45.4% of the total expenditure in the 2016 budget.
This, the statement said, "reflected the government's continued commitment" to these key sectors, despite a shortfall in revenues in the current period.
FIFA World Cup projects
Al-Emadi said a "main goal" during the preparation of the 2016 budget was to "ensure the completion and implementation" of major projects in key sectors along with projects related to the FIFA World Cup in 2022.
"This policy will maintain robust economic growth in the country," the finance minister said.
Al-Emadi said the total cost of government projects, currently under way, stood at a whopping QR261bn. And, this does not include projects in the energy sector or those implemented by the private sector.
This includes QR87bn in transport, QR54bn in other infrastructure, QR24bn in sports and QR30bn in water and electricity. Ongoing projects in education are to the tune of QR17bn and in the health sector QR7bn.
The allocation to the infrastructure sector totalled QR50.6bn in the 2016 budget, al-Emadi said and added that "infrastructure sector is key to sustainable development of the country". This represents 25% of the total expenditure planned for the next fiscal.
Funds have been set apart for the rail projects and the New Doha Port besides a number of roads including the new Al Rayyan Road, new Al Khor Road and the development of the "Fifth Ring" Road in Doha.
Infrastructure development at the Doha Industrial Area and expansion of the water, electricity and sewerage networks in various areas would be executed to keep up with population growth in urban locations of the country.
Al-Emadi said the education sector would have an increased outlay of QR20.4bn in the 2016 State Budget.
The strategic plan for the sector includes new expansion projects in Qatar Foundation for Education, Science and Community Development and Qatar University.
At QU, the expansion projects would include a new hostel, students' affairs' building, and campuses for the Colleges of Engineering, Education, Law and Medicine, in addition to a laboratory for the Faculty of Sciences.
The other education projects include the establishment of some 18 new schools and six kindergartens in 2016.
For the health sector, QR20.9bn has been set apart in the budget for 2016. Funds have been allocated for Sidra Medical and Research Center, Hamad General Hospital and Hamad Medical City.
Also, more than QR850mn has been allocated for the establishment of five new health centres, in addition to funds for the establishment of a cancer treatment centre, specialised clinics' centre, bio-medical research centre, and emergency medical services among other new projects.
"Supporting nationals" is a top priority for the government and al-Emadi said QR2bn has been provided in next year's budget for housing loans through Qatar Development Bank. This represents a 25% increase when compared to 2015.
The minister said that since 2013 there have been nearly 6,000 beneficiaries of housing loans for Qataris.
Some 3,700 plots have been readied with infrastructure and utilities to be distributed to nationals, he said.
Al-Emadi clarified that the 2016 State Budget would not source funds from the country's reserves at Qatar Central Bank or the investments of QIA.
"Qatar has accumulated strong financial reserves at QCB and made significant investments through QIA during the period of high oil and gas revenues.
"Qatar will maintain and reinvest these reserves and investments to further enhance the country's financial position," al-Emadi added.
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