Qatar approved its 2023 fiscal year budget on Monday with revenue estimated to increase 16.3% next year, its finance minister said, thanks to rising average oil prices.

Total annual revenue is estimated at 228 billion riyals ($62.64 billion) and spending at 199 billion riyals, with a budget surplus of 29 billion riyals, state news agency QNA quoted minister Ali bin Ahmed Al Kuwari as saying.

The budget was based on an oil price assumption of $65 per barrel, compared to an assumption of $55 a barrel for 2022.

Oil and gas revenue is estimated to increase 20.8% over the budgeted figure for 2022 to 186 billion riyals in 2023, while non-oil revenue is expected to be flat at 42 billion riyals.

The finance minister attributed the expected increase in revenue to "the remarkable recovery in global energy prices during the current year, in addition to the estimates of international institutions that energy prices will continue to rise in the medium term".

The Gulf state, which just hosted the 2022 soccer World Cup, posted a surplus of 30 billion riyals in the third quarter, benefiting from high global energy prices.

Total budgeted expenditure in 2023 is almost 3% lower than in 2022 as costs associated with the World Cup are completed while allocations for major projects decreased by 13.6% to 63.9 billion riyals.

About 20% of spending in 2023 has been allocated to the health and education sectors.

GDP growth hit 4.4% in the first half of 2022 but is expected to ease in 2023.

"Economic activity should continue to be supported by investment related to the North Field gas expansion and robust growth in logistics, manufacturing and trade," Standard Chartered said in a 2023 Economic Outlook report earlier this month. It forecast GDP growth at 4% in 2023 from 4.7% this year.

Qatar, among the world's top exporters of liquefied natural gas, has also seen rising demand for LNG from Europe since Russia's invasion of Ukraine in February.