Abu Dhabi: Members of the Federal National Council Tuesday passed the UAE’s federal budget of Dh46 billion for 2014, half of which will go for development and social benefits.

The members, however, protested a delay in presenting the budget for review before submitting it to the Supreme Council of Rulers of the Emirates for final approval.

While the constitution states that the budget has to be submitted to the FNC at least two months before the beginning of the fiscal year on January 1, it was actually presented to the council on November 13.

The FNC members also reiterated that every emirate in the UAE should contribute fairly to the federal budget, by allocating a certain percentage of its annual revenues to cover expenditure.

According to a report prepared by the FNC’s committee on financial, economic and industrial affairs, article 127 of the constitution makes it obligatory for each emirate to contribute a certain percentage of their annual revenues to cover the expenditure of the annual general budget of the UAE as specified in the Budget Law.

The projected UAE federal spending is slightly higher than the Dh44.6 billion approved for 2013. This year’s budget is Dh46 billion of which Abu Dhabi contributes Dh17.7 billion and Dubai Dh1.2 billion. The remainder comes from the money earned by federal departments.

The 2014 budget was approved as part of a three-year federal spending plan of Dh140 billion for 2014-2016.

By comparison, the 2011-2013 budget had provided for total expenditure of Dh133 billion.

The UAE federal budget accounts for only around 14 per cent of overall fiscal spending in the UAE. The seven individual emirates, mainly oil-producing Abu Dhabi, make up the rest.

These allocations should be spent on construction and development projects, internal security and social affairs according to the urgent needs of some of the emirates, in keeping with the UAE constitution.

The members demanded allocations for education and health be increased to boost the two sectors according to the recent Cabinet retreat led by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Some 21 per cent of the 2014 budget, nearly Dh9.7 billion, has been allocated to education.

Other allocations included Dh3.7 billion to health, Dh1.4 billion for housing programmes, Dh18.5 billion for other government services and Dh400 million for the marriage fund.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, told the House that the government takes all recommendations of the council into account and find allocations to implement them.

Al Tayer stressed that the budget was responsive to any new initiatives and programmes once endorsed by the Cabinet.

Ali Al Nuaimi, a member from Ajman, said lack of allocations was blamed by many authorities for the absence of scholarships and training programmes for citizens.

Al Tayer said the UAE has nearly 40,000 university students. “It is up to the authorities concerned to allocate additional scholarships for students. The Cabinet also approved an initiative thereby ministries may attract graduates who are offered scholarships in certain specialisations and later offered jobs in these ministries. The Finance Ministry has 40 such students, who are trained in financial areas,” the minister said.

Hamad Al Rahoumi, a member from Dubai, said this year which was named Emiratisation Year came to an end and there was no mark of it on the budget.

He added jobs are still filled by expatriates for lower salaries, a matter which makes it difficult to replace them by citizens who demands bigger salaries. “It would be extremely difficult to replace four expatriates who totally draw up to 20,000 dirhams with one citizen. The work load for the Emirati employee would be unfair and any such body would face many performance-related problems,” Al Rahoumi said.

Al Tayer said there were 2,566 vacant jobs allocated for citizens. “However, the Emiratisation does not mean to just populate offices by citizens, but to attract efficient and well-trained Emiratis who can outperform expatriates in every area.

Ahmad Al Aamash, a member from Ras Al Khaimah, said wages and salaries in the ministries of education and health represent the major chunk of their budget, while new projects are earmarked nearly nothing, despite the fact that there are hospitals lacking equipment.

Al Tayer said the financial flows are studied every six months and allocations for any projects approved by the Cabinet are made accordingly.