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Budget cuts in Qatar bite 9, March 2015

Posted by thegulfblog.com in Qatar.
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Qatar flag from the water

That most ministries in Qatar are facing significant budget cuts is relatively old news. The bean-counters in Qatar were expecting a dip in the oil price and a rise in their infrastructure-driven expenditure since at least early-2014. Consequently, budget paring-back was always a central priority of the new administration. I’ve always believed that the new lot, on the first day in power in mid-2013, skipped merrily into the Diwan, had a look at the books and were somewhat horrified by what they saw – namely unchallenged expenditure.

Qatar is a young state with an emerging bureaucracy. Spending has seldom been managed in what would be considered in a modern state a methodical, measured manner. Instead, the sense was of ministers doing their best, of course, but splurging cash left, right, and centre according to their best guesses as to what the Emir wanted. Don’t forget that under the Prime Ministership of Hamad Bin Jassim al-Thani (2007-2013), Qatar scarcely operated with a Prime Minister given how many hats he wore: also Foreign Minister (1992-2013), also chief of the Sovereign Wealth Fund (QIA), also Chairman of the national airline, and also Qatar’s dominant businessman.

So the new administration set about rectifying the fiscal situation, driven by a belief that income would plateau somewhat. But now that the oil price has dropped off the proverbial cliff, things seem to be even stricter.

But, as so often in Qatar, decisions are being made that just make little sense. A British science programme aimed solely at low-achieving Qatari male-only schools – in other words, an aim that could not possibly be more on target for the QF’s basic goal and even a goal that has become yet more important for the new administration – was scrapped. And how much is QF going to make by kicking out (albeit temporarily) students from their dorms? The self-defeating logic of Qatar never ceases to amaze.

 

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