Qatar to boost spending 27%, keep surplus

Doha/Dubai Qatar plans to boost government spending by 27 per cent in the fiscal year that began in April, including wages, social services and infrastructure, but it expects to see a comfortable surplus, state news agency QNA reported.

Qatar, the world's top liquefied natural gas (LNG) exporter, projects record high expenditures of 178 billion Qatari riyals (Dh178 billion) for the fiscal year, above the 140 billion planned for 2011-12.

The country, which is due to host the soccer World Cup in 2022, has pencilled in revenue of 206 billion riyals, a 26 per cent rise from the previous year's budget plan and a surplus of 28 billion riyals, or 4.4 per cent of 2011 gross domestic product, according to Reuters calculations.

The government expects to see a fiscal surplus of 8 per cent of gross domestic product (GDP) in the current fiscal year, up from 6.7 per cent in 2011-12, QNA said.

Qatar is less conservative in its oil price assumption this fiscal year as the budget is based on an average crude price of $65 per barrel, above $55 in previous two years. Brent crude is now around $107 per barrel, near five-month lows.

Funds allocated for public sector salaries soared 48 per cent to 37 billion riyals in the 2012-13 budget, accounting for about a fifth of the overall plan, QNA said.

The International Monetary Fund has said salary and pension hikes would add an estimated $1.6 billion (Dh5.88 billion) to government expenditure in 2011-12, but the actual fiscal balance was still projected to book a surplus of over 7 per cent of GDP in 2011-12.

The country has outlined public investment plans worth $95 billion over five years to 2016, ahead of the World Cup.