Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has approved the Government Sector Budget in Dubai for the year 2012.
According to the Department of Finance, the public revenues of Dubai government will be Dh30.43 billion while public expenditures have been targeted to be Dh32.25 billion, resulting in a deficit of Dh1.82 billion.
“This constitutes 0.6 per cent of estimated GDP of the emirate of Dubai, which is in line with international financial guidelines that state that the gap should not exceed 3 per cent of the GDP. This is further confirmation that the government is continuing to follow a rational expansionary fiscal policy as directed by the Supreme Committee of Fiscal Policy in the Emirate,” a government statement said.
“The budget directly applies directives as set by Shaikh Mohammad to focus on a prudent fiscal policy that provides the stimulus necessary to economic growth in the Emirate, the completion of the main infrastructure projects, and chart government expenditure in order to consolidate financial sustainability,” the statement said.
“The Department of Finance said that the 2012 Public Budget is based on a set of core principles, namely continuing efforts to raise the efficiency of government spending through increasing productivity and improving economic and social returns,” a press release distributed by the Dubai Government Media Office, said.
The budget also focused on diversifying the public revenue sources, increasing their returns, developing clear rules for transparency and fiscal discipline whereby all government departments will continue to implement the highest international Quality standards, especially in the services sector.
Furthermore, a 53 per cent drop in the deficit to Dh1.8 billion from the fiscal year 2011 forecasts shows the emirate is serious in dealing with the public budget deficit while maintaining the growth and support averages for social, economic sectors and public services.
In the 2012 budget for the Government of Dubai, the infrastructure, transportation and economic development sectors make up 41 per cent of total public expenditure. This includes a number of vital sectors including roads, transport, civil aviation, airports and tourism.
Twenty nine percent of total public expenditure is allocated to the social development sector including areas of health care, education, housing and culture.
The budget allocated 7 per cent of Total Government Expenditure for public services and government excellence sector, containing several key bodies including the Department of Finance, the Financial Audit Department, the Land Department, the Customs Department, and others. About 22 per cent of Public expenditure was allocated for security, safety and justice sector.
The Government Investment Expenditure is set to reach Dh5.9 billion representing 18 per cent of total public expenditure in order to complete infrastructure and developmental projects in the Emirate, that in accordance with the plans laid out to effectively contribute to raising economic growth rates and stimulating domestic and foreign investments.
Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance (DoF), indicated that all government establishments succeeded in ensuring the possibility of achieving a current surplus of Dh1billion. This comes as a direct result of efforts to rationalize Government expenditure and to improve effectiveness, but also as a result of the increased awareness among government departments to improve efficient management of public money.
