Spending slashed as Qatar prepares to run QR46.5 billion deficit

Qatar’s Emir has approved a new budget for 2016 that dramatically cuts expenditures in anticipation of the country’s first financial shortfall in 15 years.

Qatar plans to spend QR202.5 billion next year, which is 7.28 percent or QR15.9 billion less than its last fiscal year.

That’s despite the fact that outlays on government salaries, wages and major projects – such as major transportation initiatives and preparations for the 2022 World Cup – are increasing.

The government is grappling with a massive drop in revenue caused by lower oil and gas prices that are forecast to leave a hole of QR46.5 billion in next year’s budget.