Qatar Economic Outlook Issue Number 13

Appendix: Economic and Financial Terms 
 
119 
What are the limitations of GDP as a 
measure of economic output and income? 
GDP measures do not normally capture the 
value of goods and services that are not 
traded in the market, such as barter, 
volunteer and charitable services, or goods 
and services produced for people’s own use. 
Similarly, the existence of a large 
underground economy or black-market 
activities (which are not that important in 
Qatar) would result in a GDP measure that 
underestimates the true size of the economy. 
What is final consumption? 
This consists of goods and services used by 
the household and government sectors to 
satisfy their current needs or wants. 
What is gross and net investment? 
Gross investment is equivalent to the 
economy’s acquisition of fixed assets (or 
gross fixed capital formation) plus the value 
of inventory changes. Net investment is equal 
to gross investment less the consumption of 
fixed capital (i.e., depreciation) and is equal 
to the addition to the physical stock of capital 
in the economy between two periods. 
What is national savings? 
National savings is the sum national 
disposable income less final consumption 
expenditure. 
What is national income? 
National income is equal to the GDP plus the 
factor of income receivable from non-
residents less the factor of income payable to 
non-residents. 
What is national disposable income? 
This equals national income plus the sum of 
all current transfers in cash or in-kind 
receivable by resident institutional units from 
non-resident units and subtracting all current 
transfers in cash or in kind payable by 
resident institutional units to non-resident 
units.
Fiscal concepts 
What is the fiscal year? 
The State of Qatar first changed its 
accounting methodology to start a calendar-
based (January 1st - December 31st) fiscal 
year only in 2016. The previous fiscal period 
FY2014/15, which ran from 1 April 2014 to 31 
March 2015, was extended to 31 December 
2015, i.e., a period of 12 months. All revenue 
and expenditure as budgeted for 1 April 2014 
to 31 March 2015 were then prorated to 31 
December 2015. 
What is the overall fiscal balance? 
This is the difference in a given period 
between total government revenues 
(including grants) and total government 
expenditures (current and capital) plus net 
lending. 
What is the primary balance? 
This is the overall fiscal balance net of all 
interest payments and receipts by 
government. The primary balance provides 
an indicator of the current fiscal support for 
aggregate demand since interest payments 
are linked to the stocks of liabilities and 
assets of the previous period. 
What is the non-hydrocarbon (primary) fiscal 
balance? 
This is the overall fiscal balance less oil and 
gas revenues, which in Qatar is defined in 
terms of direct revenues (royalties and 
taxes), 
received 
from 
hydrocarbon 
production. Investment income from 
government companies and government-
linked companies, which may accrue from 
hydrocarbon-related activities, is not included 
in the definition of oil and gas revenues. The 
non-hydrocarbon fiscal balance provides an 

---