Public Budget Statement

The Third
Quarter of 2021
This report is published by the Ministry of
Finance to provide detailed fiscal data
covering performance during the third
quarter of 2021 including revenues,
expenditures, debt dynamics and other
key fiscal and economic developments.

The Ministry of Finance will be

publishing similar Budget reports
periodically within 30 working
days of the end of each
quarter.
Contents

1 2 3
Executive Economic Fiscal
Summary Indicators Performance
for the Third
Quarter of 2021

4 5
Public Major
Debt Projects
 1

Executive Summary
Executive Summary
According to the Planning and Statistics Authority (PSA), real GDP in Q2-2021 increased by
4.0% relative to Q2-2020. The non-hydrocarbon sector recorded a growth of 6.2% while the
hydrocarbon sector growth stood at 0.7% in Q2-2021 compared to the same period last
year. Sectors severely hit by the pandemic in 2020 including hospitality, transport & storage,
wholesale and retail trade are rebounding strongly.

Total revenue reached QR 47.0 billion in the third quarter driven by higher-than-budgeted
oil prices and corresponded to 29.3% of total 2021 Budget. On the other hand, a total public
expenditure of QR 46.1 billion has been recorded in Q3-2021 which is largely in line with the
budget. As a result, the budget balance recorded a surplus of QR 0.9 billion.

Total expenditure on major projects increased by 9.1% compared to previous quarter. The
increase was anticipated and was mainly due to large installment payments to deliver various
projects. Furthermore, newly awarded projects during the third quarter of 2021 totaled QR
2.9 billion.

Total public debt increased by 3.3% during the third quarter of 2021 to reach QR 383 billion.
The increase resulted from a QR 10.2 billion new domestic issuance. External debt redemption
in the third quarter totaled QR 0.6 billion. There was no new external issuance for the period,
except for an incremental ECA drawdown.

5 Public Budget Statement for Q3-2021 | Executive Summary

 2

Economic Indicators
Economic Indicators
According to the Planning and Statistics Authority (PSA), real GDP in Q2-2021 increased by 4.0%
relative to Q2-2020. The non-hydrocarbon sector recorded growth of 6.2% while hydrocarbon
growth stood at 0.7% in Q2-2021 compared to the same period last year.

Sectors severely hit by the pandemic in 2020 and the related Covid-19 restrictions are
rebounding strongly. Hospitality, transport & storage, and wholesale and retail trade sectors
were the highest performing sectors in Q2-2021. Moreover, the manufacturing sector recorded
strong y-o-y growth of 13.4% in Q2-2021 and is now back to pre-pandemic levels.

Real y-o-y growth of the hydrocarbon Percentage change in sectoral real GDP growth
sector stood at 0.7% in Q2-2021 primarily Q2-2021/Q2-2020
driven by the completion of scheduled
41.0%
temporary maintenance during 2020, and
the operation of the Barzan project.
26.9% 26.1%
Real GDP growth in the first half of
2021 was 0.8% compared to the same
period in 2020, mostly driven by the non-
13.4%
hydrocarbon sector (+1.9%). The growth
trend is expected to continue in the second
half of 2021 due to the recent easing of
Covid-19 restrictions and the scheduled Hospitality Transport & Wholesale & Manufacturing
storage retail trade
sporting and entertainment events. The
2.2% forecast for real GDP growth for 2021
remains unchanged.

Year On Year Change 2020 Q1-2021 Q2-2021

Real GDP growth -3.7% -2.5% 4.0%

Hydrocarbon -2.1% -2.3% 0.7%

Non-Hydrocarbon -4.6% -2.7% 6.2%

7 Public Budget Statement for Q3-2021 | Economic Indicators

 3

Fiscal Performance for the

Third Quarter of 2021
Fiscal Performance for the Q3–2021
Third Quarter of 2021
The third quarter reflects the overall pattern of expenditure
stability. Total public expenditure amounted to QR 46.1 billion,
representing a marginal decline of 0.3% compared with the
previous quarter. Average Oil
Price
On the other side, total revenue reached QR 47.0 billion in the third
quarter which corresponds to a decline of 6.2% in comparison
with the second quarter. This was driven by the 70.4% decline in
$73.2
non-hydrocarbon revenue compared to Q2-2021. per barrel

Stable expenditure and lower revenue during the third quarter of

2021 resulted in a lower surplus compared to the previous quarter.
Nonetheless, the state budget recorded a third consecutive Total
quarterly surplus amounting to QR 0.9 billion in Q3-2021. The Revenue
total budget surplus for the first three quarters in 2021 reached
QR 4.9 billion. 47.0
QR bn

Total
Expenditure

46.1
QR bn

Surplus

0.9
QR bn

9 Public Budget Statement for Q3-2021 | Fiscal Performance

Revenue

2021 Percent of Q-o-Q Y-o-Y

Item (QR Billion) Q3-2021
Budget 2021 Budget Change Change

Oil and Gas Revenue 121.6 41.2 33.9% 34.2% 34.6%

Non-Oil Revenue 38.5 5.7 14.9% -70.4% -30.8%

Total Revenue 160.1 47.0 29.3% -6.2% 20.6%

Total revenue for Q3-2021 reached QR 47.0 billion, which represents a decrease of 6.2%
compared to the previous quarter. This was driven by the significant drop in non-hydrocarbon
revenue since the substantial share of budgeted non-oil revenue for 2021 was achieved in
Q2-2021 due to the timing of corporate income tax collection. Despite the anticipated drop
in non-oil revenue for Q3-2021, total revenue for the third quarter accounted for 29.3% of the
2021 budget.

The total oil and gas revenue amounted to QR 41.2 billion,

which represents an increase of 34.6% compared to the
same period last year supported by higher oil prices.
88%
Non-oil revenue for Q3-2021 amounted to QR 5.7 billion,
which represents 14.9% of the 2021 budget. Total non-
oil revenue year-to-date reached QR 30.5 billion, and
47.0
the expected non-oil revenue for the fourth quarter of QR bn
2021 stands at around QR 6.5 billion leaving total non-oil
revenue for the year at QR 37.0 billion. 12%

Oil and Gas

Non-Oil

10 Public Budget Statement for Q3-2021 | Fiscal Performance

Expenditure

2021 Percent of Q-o-Q Y-o-Y

Item (QR Billion) Q3-2021
Budget 2021 Budget Change Change

Salaries and Wages 57.9 14.2 24.5% -6.4% 4.5%

Current Expenditure 60.7 14.8 24.4% -2.9% 18.5%

Minor Capex 4.0 0.7 18.4% -11.0% -0.8%

Major Projects 72.1 16.3 22.7% 9.1% 10.5%

Total Expenditure 194.7 46.1 23.7% -0.3% 10.7%

Total public expenditure during the third quarter of 2021 remained relatively stable and
amounted to QR 46.1 billion, representing a slight decline of 0.3% compared to the previous
quarter. Total public expenditure for Q3-2021 accounted for 23.7% of the 2021 budget.

Chapter I “Salaries and Wages” decreased by 6.4% compared to the previous quarter. The
decline is a result of the advanced payments made to some sectors, mainly to the education
sector, during the previous quarter.

Chapter II “Current Expenditure” decreased by 2.9%

compared to the previous quarter mainly due to lower
interest payments in Q3-2021. 31%
35%
Chapter IV “Major Projects” increased by 9.1% compared
to the previous quarter. The increase was anticipated
and was mainly due to the final installments on several
46.1
QR bn
delivered projects. Furthermore, newly awarded
projects during the third quarter of 2021 totaled over
QR 2.9 billion. 2%

32%
1
Total current expenditure includes CH I and CH II, and total capital Salaries and Wages Current Expenditure
expenditure includes CH III and CH IV
Capital Expenditure Major Projects

11 Public Budget Statement for Q3-2021 | Fiscal Performance

 4

Public Debt
Public Debt
For the period ending September 30th, 2021, an increase of 3.3% was registered in the overall
public debt level. The increase was a result of the QR 10.2 billion new domestic issuance. Total
public debt reached QR 383.0 billion by the end of Q3-2021. External debt redemption in the
third quarter totaled QR 0.6 billion. There was no new external issuance for the period, except
for an incremental ECA drawdown.

Domestic Debt
Total domestic public debt stood at QR 162.2 billion,
as of September 30th, 2021, which represents
42.4% of the overall public debt. The composition of
42.4%
domestic debt includes local bonds and loans.

External Debt
Total external public debt at the end of September 383.0
2021 stood at QR 220.8 billion, which represents QR bn
57.6% of the total public debt. The external debt
consists of external bonds and loans. 57.6%

Public Debt Outlook for 2021 Domestic Debt

For the remainder of 2021, the total external debt External Debt

repayments stand at QR 1 billion. As a result, the

anticipated total public debt figure for end of 2021
is expected to be QR 382 billion.

13 Public Budget Statement for Q3-2021 | Public Debt

 5

Major Projects
Major Projects

Awarded Projects During the Third Quarter of 2021 QR Million

Infrastructure and Roads 2,621.8

Sewer and Drainage 166.9

Parks and Green Areas 71.7

Miscellaneous 84.7

Total 2,945.1

15 Public Budget Statement for Q3-2021 | Major Projects

Projects to be Completed in 2021:

Food Security Project

2021

Doha Old Port

2021

2021

Lusail Light
Rail Transit

2021

Sabah Al-Ahmad
Corridor

16 Public Budget Statement for Q3-2021 | Major Projects

FIFA World Cup Qatar 2022 Stadiums:

2017 2020

Khalifa Al-Rayyan
International Stadium
Stadium

2019 2021

Al Janoub Lusail
Stadium Stadium

2020 2021

Education City Al Thumama

Stadium Stadium

2020 2021

Al Bayt Ras Abu Aboud

Stadium Stadium

17 Public Budget Statement for Q3-2021 | Major Projects

 Budget
Terms

Public Budget Chapter One

A detailed official estimate that includes a (Salaries and Wages)
statement of the estimated revenue to be Expenses related to all salaries, wages,
collected and the expenditure estimated allowances and remunerations of employees
by government financial units for a future and workers in ministries and government
fiscal year. agencies.

Revenue Chapter Two

All revenues that the State receives from
(Current Expenses)
income from natural sources, taxes, All expenses necessary for the works and
customs, fees for services and all other services performed by the State and its
sources of income. various agencies, including the cost of the
necessary materials and of various services.
Expense
All expenditure that the State spends to Chapter Three
ensure the provision of services to all (Capital Expenditure)
citizens, including various current and Expenditure on fixed assets necessary to
capital expenditure. enable ministries and government agencies
to perform their tasks including all devices
Budget Balance and equipment, whether required for new
(Surplus / Deficit) purposes or for the purpose of replacement.
The difference between expected revenue
and planned expenses, a “surplus” occurs Chapter Four
when revenue exceed expenditure and a (Major Projects)
“deficit” occurs when expenses exceed Expenditure allocated for long-term
revenue. development projects to ensure the
development and modernization of services
and facilities provided by the State in a way
that contributes to economic growth.

18 Public Budget Statement for Q3-2021

For further information, visit
www.mof.gov.qa

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