In 2025, Qatar has posted budget deficits in both the first and second quarters, reversing three years of surpluses. The government’s rising expenditure and flat revenue growth have strained fiscal performance.
During the first quarter, the deficit reached 0.5 billion riyals (about USD 133 million). Authorities financed the shortfall using debt instruments. Total revenue dropped 7.5% year-on-year, falling to 49.4 billion riyals. Non-oil revenue contributed 6.9 billion riyals, while public expenditure declined slightly by 2.8%—insufficient to close the gap.
In the second quarter, the deficit widened to 757 million riyals (around USD 208 million). Spending climbed 5.7% compared with the previous year, reaching 60.6 billion riyals. Total revenue slipped 0.1% to 59.8 billion riyals. Oil and gas income made up 34 billion riyals, while non-hydrocarbon sectors generated 26 billion riyals.
These back-to-back deficits mark the end of Qatar’s surplus streak since 2022. Economists expect the economy to expand by 2.7% in 2025 and accelerate to 5.4% in 2026, supported by LNG expansion and diversification efforts.
Despite diversification programs, hydrocarbon revenues still dominate the fiscal structure. Policymakers face growing pressure to broaden non-oil income sources and manage spending efficiency. Sustaining fiscal stability will depend heavily on energy price trends and domestic economic reforms.
Experts caution that if oil prices fall or non-oil revenues stagnate, the fiscal position may weaken further.
In conclusion, Qatar’s fiscal planners must balance development spending with revenue reforms to restore stability. Strengthening non-energy sectors and improving budget discipline will be key to long-term resilience.
