Dubai: The Government of Dubai’s 2017 budget shows an increase in budget allocations driven largely by higher infrastructure and social spending even as total government revenues are projected to declined.

Earlier this year, the government issued the Financial Regulations for the Government of Dubai Law No (1) for the year 2016 on restructuring the emirate’s budget. The law identified new classifications for the general budget — acknowledging general, independent and extension budgets. The new classification allows each party to exercise its functions independently and more transparently.

“The restructuring of the budget and the new classification of entities resulted in a decrease in projected revenue figures for the fiscal year 2017 compared to 2016,” the Government of Dubai said in a statement. “However, comparing revenue items for 2017 with 2016 make it obvious that the government expects an increase in fee revenues [of] 6 per cent. This is due to the economic growth of the emirate and the growth achieved in sectors such as tourism and retail.”

Government fees represent 76 per cent of government revenues while tax and customs collections represent 16 per cent of revenue. Oil income was limited to only 6 per cent of total government revenues while 2 per cent of total government revenues will be coming from government investment returns, as a vital contribution to supporting economic growth.

Confirming the government’s keenness to support the local economy, government expenditures for the 2017 budget have seen a 3 per cent increase compared to 2016.

As part of the government’s continued efforts to raise the levels of happiness and offer a decent life for citizens and residents, the 2017 budget has also seen the allocation of resources for 3,500 new job opportunities.

The allocation of salaries and wages represents 33 per cent of total expenditures, while general, administrative and support expenditures, as well as grants represent 47 per cent of total expenditure.

Despite the new classification, these expenditures have seen an increase of 6 per cent compared to the 2016 budget, which confirms a keenness to support the community through the expansion of health, education and housing expenditures, while raising the level and quality of sports, artistic and cultural activities, as well as supporting innovation.

The Government of Dubai continues to support infrastructure projects as well as future projects related to Expo 2020 Dubai.

Infrastructure allocation increased by 27 per cent from the 2016 allocation to account for 17 per cent of total government expenditure, reflecting the emirate’s concern for the gradual implementation of Expo 2020 projects — all with an eye towards attaining Dubai Plan 2021 targets.

“The Dubai 2017 budget is positive and pragmatic,” said Paras Shahdadpuri, Chairman of the Nikai Group of Companies. “The budget allocation for infrastructure will go up by 27 per cent. This is a welcome move. The projects will further fuel economic activity in the emirate.”

Dubai managed to achieve financial sustainability by achieving an operating surplus of Dh2.9 billion in the current financial year. This illustrates the breadth of the emirate’s financial solvency, Dubai Government said in a statement.