Qatar faces budget deficit for first time in 15 years

The Persian Gulf state of Qatar has announced that it is facing budget deficit for the first time in the past 15 years because of the recent fall in global oil price.

According to a report published on the website of qatar’s Ministry of Development Planning and Statistics, the tiny Persian Gulf country is in for a fiscal shortfall of 4.9 percent of its GDP next year, and a deficit of 3.7 percent in 2017, AFP reported.

"The fall in oil prices that began in June 2014 was not anticipated," said Qatar's minister of development planning, Saleh al-Nabit, who added, "If they persist, lower oil prices will narrow the government's fiscal cushion but our considerable financial reserves will provide an ample buffer."

The official, however, noted that despite the budget deficit, "important capital spending plans will proceed."

The projected budget deficit comes at a time that Doha is implementing huge infrastructure projects at the estimated cost of USD 200 billion. The projects include a new subway system, a new port and even a new city north of the capital Doha.

A large number of these projects are linked directly or indirectly to the World Cup, which Qatar is expected to host in seven years.

Qatar's hosting of the 2022 football tournament, which had already come under fire over human rights violations and alleged corruption, is now under increased scrutiny in the wake of the recent scandal that has hit world football's governing body, FIFA.

Following the arrest of FIFA officials in Zurich, Swiss judicial authorities have announced that they will conduct an investigation into the awarding of the 2022 World Cups, which they suspect may be part of a far-reaching corruption scandal.

However, Qatari officials overseeing tournament plans, say their preparations will not be affected by this issue, despite speculation that Qatar may lose its World Cup hosting rights due to the unfolding scandal at FIFA.

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