The Gulf oil state of Qatar, recovering 
slightly from last year's decline in world oil prices, 
announced its first budget since early 1985 and projected a 
deficit of 5.472 billion riyals. 
    The deficit compared with a shortfall of 7.3 billion riyals 
in the last published budget for 1985/86. 
    In a statement outlining the budget for the fiscal year 
1987/88 beginning today, Finance and Petroleum Minister Sheikh 
Abdul-Aziz bin Khalifa al-Thani said the government expected to 
spend 12.217 billion riyals in the period. 
    Projected expenditure in the 1985/86 budget had been 15.6 
billion riyals. 
    Sheikh Abdul-Aziz said government revenue would be about 
6.745 billion riyals, down by about 30 pct on the 1985/86 
projected revenue of 9.7 billion. 
    The government failed to publish a 1986/87 budget due to 
uncertainty surrounding oil revenues. 
    Sheikh Abdul-Aziz said that during that year the government 
decided to limit recurrent expenditure each month to 
one-twelfth of the previous fiscal year's allocations minus 15 
pct. 
    He urged heads of government departments and public 
institutions to help the government rationalise expenditure. He 
did not say how the 1987/88 budget shortfall would be covered. 
    Sheikh Abdul-Aziz said plans to limit expenditure in 
1986/87 had been taken in order to relieve the burden placed on 
the country's foreign reserves. 
    He added in 1987/88 some 2.766 billion riyals had been 
allocated for major projects including housing and public 
buildings, social services, health, education, transport and 
communications, electricity and water, industry and 
agriculture. 
    No figure was revealed for expenditure on defence and 
security. There was also no projection for oil revenue. 
    Qatar, an OPEC member, has an output ceiling of 285,000 
barrels per day. 
    Sheikh Abdul-Aziz said: "Our expectations of positive signs 
regarding (oil) price trends, foremost among them OPEC's 
determination to shoulder its responsibilites and protect its 
wealth, have helped us make reasonable estimates for the coming 
year's revenue on the basis of our assigned quota." 
 REUTER