Qatar proposes to base 2012-13 budget on $65 oil

Zawya:  The country’s finance ministry proposed that the budget be based on an oil price of $65 a barrel, finance minister Yousef Hussain Kamal told reporters at a conference here yesterday. Qatar based its 2011-2012 and 2010-2011 budgets on an oil price of $55 a barrel, the state-run Qatar News Agency reported in March last year, citing the finance ministry.

Much bigger budget
The budget will be “much bigger” than the previous one and may be announced this month, Kamal said here yesterday. Inflation will average 2 per cent to 3 per cent this year, he said.

Qatar, the world’s biggest exporter of liquefied natural gas, relied on oil and gas for 58.3 per
ent of its nominal gross domestic product in 2011, according to the country’s economic planning board. Crude oil prices have risen 32 per cent in London since May 2010.

The country had the world’s fastest economic growth for the past two years, according to International Monetary Fund data, amid rising oil prices and increased gas exports.

Qatar’s fiscal-year budget is typically released by early April and remains in effect until the following March.

The finance ministry delayed release of the new budget until as late as June this year because of accounting changes. Qatar raised its annual capacity to produce liquefied natural gas to 77 million tonnes last year.