Qatar Records Budget Surplus in Q2 2024
In a surprising turn of events, Qatar has reported a budget surplus of 2.6 billion riyals ($713.31 million) in the second quarter of 2024, according to the Finance Ministry. This unexpected surplus comes after the Gulf state posted a surplus of 2 billion riyals in the first quarter.
Despite the positive surplus, total revenue for the second quarter saw a decrease of 12.4 percent compared to the same period last year, totaling 59.9 billion riyals. This drop in revenue was attributed to weaker demand which led to a reduction in international gas prices.
On the spending side, Qatar managed to cut expenses by almost 2 percent in the second quarter, with total spending amounting to 57.3 billion riyals year-on-year.
The Finance Ministry has announced that the entire surplus will be utilized to reduce Qatar’s public debt, leaving no cash surplus behind. This move is in line with the country’s efforts to strengthen its financial position and reduce its debt burden.
Despite ongoing efforts to diversify its economy, Qatar remains heavily dependent on gas revenue for government income. In a forecast made in December, Qatar predicted a 14.5 percent decrease in oil and gas revenue for 2024, while non-oil revenue is expected to see a modest increase of about 2.4 percent.