Declining oil prices in the Mid-East require close supervision of state budgets and state-controlled institutions.
The Minister of Finance Ali Sharif Al Emadi confirmed that the operational spending in the state-controlled institutions is subject to an ongoing review by the Ministry of Finance, in the context of the actions carried by the State of Qatar to face declining oil prices.
At a joined press conference with the Director of the International Monetary Fund (IMF) Christine Lagarde, following the joint meeting of the GCC Finance Ministers with the Governors’ committee and the IMF Director, held in Doha today, HE the Minister of Finance pointed out that this review began nearly two years ago. There would be a reduction in the operating budgets of most government agencies through the 2016 budget, he stressed.
HE Ali Al Emadi went on saying that the new budget will focus on the key projects which will continue at the same pace and at reasonable cost, pointing that Qatar is studying a number of options for tackling the projected deficit in the 2016 budget. Technical committees are examining these options,
With regard to the options of tackling the 2016 budget deficit, HE Al Emadi said that financing of this deficit will be through internal sources or borrowing from the domestic and foreign market, ruling out possibility of withdrawing from the State’s cash reserves or resorting to Qatar Investment Authority (QIA).
HE the Minister reviewed the topics discussed at the meeting, saying that discussions focused on the strong financial status enjoyed by the Gulf states, and large financial surpluses, they achieved in the past years.
IMF Director Christine Lagarde praised Qatar’s policies for facing the issue of declining oil and gas prices.
She added that Gulf states should review the fiscal and monetary policies in accordance with global developments, especially with the decline in oil prices, noting the importance of supporting the private sector and its participation in the development as well as the rationalization of public expenditures and the development of markets to allow more foreign investment.
