Qatar’s fiscal space ought to improve on rebound in oil prices and proposed introduction of value added tax, thus avoiding a dip into reserves, and will also see gradual debt reduction ahead, according to BMI Research, a part of Fitch group, Zawya reported. “We believe Qatar’s fiscal balance will swing back into surplus in 2018 as VAT is introduced and energy prices continue to strengthen, facilitating a gradual reduction in debt levels—which currently stand at around 53% of GDP,” BMI said. Qatar’s budget deficit would narrow to 1.1% of GDP in 2017 as higher hydrocarbon prices increase overnment earnings and measures to diversify state revenue are implemented, it said.
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