Qatar recorded a QAR 0.5 billion budget deficit in Q1 2025, as revenues fell by 7.5 percent, but the shortfall was covered through debt instruments, according to the Ministry of Finance.

Qatar has recorded a budget deficit of QAR 0.5bn ($133.3m) during the first quarter (Q1) of 2025, which was covered through debt instruments, the country’s Ministry of Finance (MoF) announced on Tuesday.

Q1’s revenues stood at approximately QAR 49.4 bn (around $13.57bn), representing a 7.5 percent decrease in comparison to the same period last year. The MoF explained that the figure included QAR 42.5bn ($11.66bn) in oil and gas, whereas the remaining QAR 6.9bn ($1.89bn) were non-oil revenues.

The public expenditure during the same period hit QAR 49.9bn (around $13.7bn), marking a 2.8 percent drop in comparison to Q1 2024. A total of QAR 16.9bn ($5.5bn) went towards salaries and wages, whereas QAR 18.5bn ($5bn) was allocated for current expenditures.

Another QAR 13.1bn ($3.6bn) went towards major capital expenditures, and QAR 1.2bn ($329m) were allocated for minor capital expenditures.

The top four sectors during Q1 were municipality and environment, health, energy and the General Secretariat of the Council of Ministers, according to the ministry.

Contracts awarded to foreign companies during Q1 of 2025 amounted to QAR 1.5bn ($411m), representing a 50 percent increase from the same period last year. Public entities awarded government procurement contracts through tenders and auctions totalled approximately QAR 6.4bn ($1.75bn).

Qatar’s 2025 state budget

The Gulf state announced this year’s budget last December, which had a total expenditure of QAR 210bn ($57.8bn). The expenditure allocations increased by 6.3 percent, whereas minor capital expenditures increased by 7.7 percent in comparison to the previous year.

The expected total revenue for the 2025 budget is QAR 197bn ($54bn), including QAR 154bn ($42bn) from oil and gas and QAR 43bn ($12bn) from non-oil revenues.

Commenting on the projected deficit for 2025, Qatar’s Minister of Finance Ali Al-Kuwari said that the expected amount is QAR 13.2bn ($3.6bn).

Meanwhile, 2024 saw a 1.7 percent increase in the country’s gross domestic product growth. Qatar’s GDP is also expected to grow by 7.9 percent by 2027 from around 2.4 percent in 2025 due to the beginning of the production of the liquefied natural gas expansion project.