Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dubai's budget for fiscal year 2010.
Lieutenant General Dahi Khalfan Tamim, Dubai Police Chief and Head of the Government's Budget Committee, announced the news Thursday.
The budget maintains spending on strategic projects and infrastructure development, to boost growth during a time of global economic turmoil — but limits the deficit to 2 per cent, well within international best practice.
Abdul Rahman Al Saleh, Director General of Dubai Finance Department, said government revenues were projected to reach Dh29.4 billion, against expenditure of Dh35.4 billion, leaving a deficit of Dh6 billion.
Consistent
"The deficit is consistent with the financial policy, which stipulates that the deficit should not go beyond 3 per cent of the total gross domestic product of the emirate. The 2010 budget has a deficit of only 2 per cent,'' he said.
He highlighted a current surplus of Dh1.9 billion as a result of increased efficiency in management of public spending programmes.
Priorities include:
- Economic sector, infrastructure and transportation, (49 per cent of expenditure)
- Social sector and public services, like health and education (23 per cent); and
- Security and justices (20 per cent).
Lt Gen Dahi told Gulf News: "We expect next year to be better financially for Dubai as we wrap up spending on infrastructure projects. Thirty per cent of the budget is slated for government investment. By 2011 we will be in a better position because most of our commitments to these projects will be met."
Economists and businessmen were upbeat about the budget. "[Dubai] is trying to maintain high levels of infrastructure spending because of the benefit to the economy," said Tudor Allin-Khan, chief economist, HC Securities. "2009 was about dealing with the problem of the global financial crisis. That has come to an end."
Paras Shahdadpuri, chairman, Nikai Group of Companies, and president, Indian Business and Professional Council, said: "It is laudable that the government has been able to restrict their deficit… The business community is looking forward to the growth of Dubai."
- Inputs from Ahmed A. Namatalla and Aya Lowe, Staff Reporters, and Wam
Metro work on track
A senior Dubai official yesterday told Gulf News that a report saying a Japanese-Turkish construction consortium will suspend work on the Dubai Metro over delayed payments is "baseless".
Mattar Al Tayer, chairman of the Dubai Roads and Transport Authority (RTA), said "work is ongoing" on the $8 billion project.
A Japanese report claimed that the consortium will stop working on the Metro due to delayed payments. The RTA said in a statement yesterday that it is "committed to paying its contractors on time".
- Duraid Al Baik, Associate Editor
