The 2017 budget for Dubai has been sanctioned by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
He approved the Government of Dubai’s Budget Law No. (17) for the year 2016 for the emirate of Dubai’s 2017 general budget, with $12.88bn (AED47.3bn) expenditures, according to the new budget classification.
Infrastructure allocation has increased by 27% from what has been allocated for the fiscal year 2016, to reach 17% of total government expenditure, reflecting the emirate's concern for the gradual implementation of the Expo 2020 projects.
Issued earlier this year, the financial regulations for the Government of Dubai Law No. (1) for the year 2016 has had a great impact on restructuring the emirate’s budget, Dubai Media Office reported.
The budget features a significant rise in infrastructure spending by 27% compared to 2016.
Abdulrahman Saleh Al Saleh, director general, department of finance for the Government of Dubai said: “The Financial Regulations for the Government of Dubai Law, developed the general budget classification of the government entities.
“Some entities were put in a new order under the independent or annexed budgets, which led to the reduction of budget revenues and expenditures.”
Al Saleh, however, stressed that the 2017’s budget expenditures recorded an increase of three percent from the expenditures approved for 2016’s budget, which reflects the expansion of the Government of Dubai and its determination to support the local economy.
“The 2017 budget was adopted with a deficit of $680m (AED2.5bn), representing 0.6% of the GDP of the emirate,” added Al Saleh.
“The deficit resulted from the reclassification of the budget and the 27% increase in infrastructure expenditure.”
“Law no. (22) of 2015 regulating partnership between the public sector and the private sector, forms an ideal platform to build modern practices in the management of financial resources efficiently and effectively.”
Confirming the government's keenness to support the local economy, Government expenditures for 2017’s budget has seen an increase of three percent compared to 2016.
As part of the continued governmental efforts to raise the levels of happiness and offering a decent life in the emirates for citizens and residents, 2017’s budget has allocated resources for 3,500 new job opportunities.
The allocation of salaries and wages represents 33% of total expenditures, while general, administrative, grants and support expenditures represents 47% of the total expenditures.
Despite the new classification, these expenditures have seen an increase of 6% compared to 2016’s budget, which confirms the keenness on supporting the community through the expansion of health, education and housing expenditures, and raise the level of sports, artistic and cultural activities, in support to the innovation and creativity policies.
On the other hand, Dubai has managed to achieve financial sustainability by achieving an operating surplus of $790m (AED2.9bn).
0 comments