Qatar’s budget for the fiscal year 2014-15, released last week, deserves praise for focusing heavily on development-specific projects.

Unlike some of the earlier financial plans, the new budget is noted for projecting a relatively reasonable growth level in revenue and expenditure alike. As such, expenses and income are projected to rise by 3.7 per and 3.5 per cent respectively.

By comparison, the budget for fiscal year 2013-14 was prepared with increases of 6 per cent and 18 per cent in expenditures and revenues. Anyway, the revenue and expenditure for fiscal year 2014-15 are estimated at $62 billion and $60 billion, which thus presumes a nominal surplus of $2 billion.

Nevertheless, the budget is expected to post a stronger surplus on the back of higher than projected revenues. The authorities prepared the budget at an average price of $65 for a barrel of oil. This marks the third time in a row where Qatar assumed an average of $65 a barrel for its budgetary preparation.

Certainly, this is a conservative rate as actual oil prices hover around $100 a barrel in the international markets. The petroleum sector, including gas, is exceptionally vital for the well-being of the Qatari economy by virtue of contributing more than two-thirds to treasury revenues. The situation is largely the same in most Gulf Cooperation Council (GCC) countries.

Clearly, the assumption of a conservative figure is a strategic choice for policymakers in Qatar. Press reports point out that the actual surplus in fiscal year 2013-14, which ended in March, represented some 9 per cent of the country’s gross domestic product (GDP), an astounding performance by any standard. In effect, this amounts to a staggering $17 billion, attained via stronger than budgeted oil prices.

Notably, the Gulf Monetary Union project, of which Qatar is a member, stipulates that the budgetary shortfall should be limited to 3 per cent of GDP.

The rising expenditure in the budget was primarily reserved for development projects, with an increase of around 17 per cent. This allows the category to account for 40 per cent, or $24 billion, of total expenditures. This level of emphasis on development projects is not customary in regional economies.

Altogether, the monetary value of projects destined for completion within a five-year period amounts to $182 billion. The numerous schemes, entailing a metro and a light rail system, fit neatly into efforts to prepare the country for the World Cup 2022.

The figure excludes possible investments in the oil and gas sector. Qatar is the largest exporter of a strategic gas product, namely liquefied natural gas (LNG). Clients of Qatar’s LNG include Japan, the UK and the US.

However, a sort of moratorium remains effective for further expansion of the gas industry, with the aim being to maximise the utility of existing capacity.

Adding to governmental outlays is spending made by private sector investors. Clearly, expenditures concerning development projects and by private investors should further invigorate the economy.

What’s more, the nominal growth in general budgetary spending is taking place in the near absence of inflationary pressures.

Qatar’s largest-ever budget should offer positive spillover effects, notably solidifying the economy’s competitiveness. The 2013-14 ‘Global Competitiveness Report’ of the World Economic Forum regards Qatar as the most competitive economy in the MENA region.

In fact, the report grants Qatar the status of the 13th most competitive economy in the world, an astounding achievement.

The writer is a Member of Parliament in Bahrain.