Qatar’s Ministry of Finance has reported a significant budget deficit of QAR22.8 billion for the third quarter of 2026, as government spending reached QAR39.9 billion ($10.91 billion), outpacing total revenues of approximately QAR17.1 billion ($4.68 billion). This financial shortfall follows a previous deficit of QAR21.2 billion recorded in the second quarter of the same year.
The ministry disclosed these figures in a statement on its official X account, highlighting that oil revenues contributed QAR10.748 billion, while non-oil revenues accounted for QAR6.327 billion. The disparity between expenditures and revenues underscores ongoing fiscal challenges for the Qatari government.
Expenditure Breakdown
In the third quarter, the bulk of government spending was directed towards salaries and wages, totaling QAR16.856 billion. Current expenditures reached QAR15.437 billion, while major capital expenditures amounted to QAR6.878 billion, with minor capital expenditures accounting for QAR706 million. This distribution reflects the government’s focus on operational needs alongside capital projects during the quarter.
Government Tenders and Contracts
In a related development, the Ministry of Finance announced that government tenders and auctions during the same period totaled QAR6 billion. This figure represents a 26 percent decrease in the number of tenders and a 60 percent decline in value compared to the third quarter of 2025. Local companies secured contracts worth QAR5.5 billion, a 43 percent drop year-on-year, while foreign companies received awards valued at QAR500 million, marking a staggering 91 percent decrease.
The sectors that received the largest shares of government contract awards included health, municipality and environment, education, and culture and sports. Notably, the value of awarded contracts increased from QAR4.4 billion in the second quarter of 2026, indicating a potential shift in government spending priorities.
As Qatar navigates these fiscal challenges, the implications for future government spending and economic policy will be closely monitored by market observers and investors alike. For further details, refer to Economy Middle East.
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