Qatar: Selected Issues
IMF Staff Country Reports, April 10, 2017
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- Qatar: Selected Issues
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Bibliographic details
- Published: April 10, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475593525.002
Summary and context
- This Selected Issues paper discusses measures required to enhance nonhydrocarbon revenue to support fiscal consolidation in Qatar.
- Qatar depends heavily on the hydrocarbon sector for exports and revenue receipts.
- The authorities have embarked on fiscal consolidation, underpinned by cuts to current expenditures and enhanced efforts to raise additional revenue.
- Safeguarding Qatar’s wealth to ensure intergenerational equity and ensure adequate resources for the implementation of the second National Development Strategy would entail increased mobilization of nonhydrocarbon revenue in the near to medium term.
- Exploring other sources of tax revenue to diversify the government revenue structure and build a stable tax revenue base is also critical.
Key findings and implications
- Heavy reliance on hydrocarbon revenue exposes public finances to oil-price shocks and revenue volatility.
- Fiscal consolidation efforts combine current expenditure cuts with measures to increase revenue.
- Increasing nonhydrocarbon revenue is necessary to:
- Safeguard national wealth.
- Ensure intergenerational equity.
- Provide adequate resources for the second National Development Strategy.
- Diversifying government revenue through other tax sources is critical to build a stable tax revenue base.
Policy recommendations (implied by the paper's focus)
- Enhance mobilization of nonhydrocarbon revenue in the near to medium term.
- Explore and implement other sources of tax revenue to diversify the government revenue structure.
- Continue fiscal consolidation measures while protecting investment in national development priorities.
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- Country Report