Qatar’s minister of finance, Ali Shareef Al Emadi, expects that his country will witness a deficit in its budget for 2016 – the first time in 15 years.
Al Emadi says: “The focus will be on financing the deficit from internal sources, or borrowing from the domestic market or the outside, through the issuance of bonds,” reports Jordan-based Assabeel.
He denied his country’s intention to use cash reserves or resort to the Qatar Investment Authority (the sovereign fund of Qatar) for the provision of funds from foreign investments to repay the expected deficit, noting that the deficit figures will be limited and reasonable.
The Qatari minister says his country is looking at a number of options to address the decline in oil prices, adding that the most prominent step the government is taking currently in this regard is to review the ongoing operational spending for all state departments.
He adds that the 2016 budget, which is currently being developed, includes a number of financial cuts in operational ministries, while the focus will be on major projects only.