Sharjah: His Highness Dr. Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah, on Monday, approved the general budget of Sharjah with a total expenditure of Dh32.24 billion. The general budget for this year aims to achieve financial sustainability, enhance the economic competitiveness of the Emirate, and promote investment in infrastructure, stated the Emirate's Department of Finance.
It also seeks to mitigate risks faced by global economies, including inflation, high-interest rates and economic stagnation. While the expenditures have decreased by 12 per cent from the 2022 budget, they do not impact spending in essential areas, including employment and economic and social development, confirmed the government department.
Sheikh Mohammed bin Saud Al Qasimi, Chairman of the Sharjah Finance Department (SFD), said, "The budget reinforces the Emirate's strategic direction in developing infrastructure in vital facilities and areas." He added, "This will be done while preserving the environment and public health and expanding the role of tourism in the Emirate."
The government has also adopted several strategic priorities by granting discounts and reviewing service fees to reduce the cost of business for customers and investors. A portion of the budget has also been moved aside to create an environment for local and international investors. New ventures for tourism – including cultural, heritage, therapeutic, scientific and recreational tourism- will also be created.
Allotment of funds
Waleed Al-Sayegh, Director General of the Sharjah Finance Department, said, "The infrastructure sector ranked first, constituting 35 per cent of the total general budget for the year 2023." At least 34 per cent has been allotted to the economic development sector, marking a one per cent increase from 2022.
As for the social development sector, the government of Sharjah has allotted 23 per cent of the public budget for enhancing scientific, cultural and heritage services. The funding will also look into stimulating creativity, innovation and scientific research, ensuring a healthy environment and promoting decent living. Meanwhile, according to Al-Sayegh, the government administration, security and safety sectors have constituted eight per cent of the total general budget for the year 2023.
Revenues
As for the government's general revenues, the government of Sharjah has said operational revenues constitute 69 per cent of the total revenue budget, marking an increase of 11 per cent over the operating revenues for 2022. "The percentage of capital revenues reached 11 per cent for the year 2023. As for tax revenues, they constituted about ten per cent of total public revenues, with an increase of about 48 per cent over tax revenues for 2022," said Al-Sayegh.
Customs revenues account for four per cent, while oil and gas revenues constitute about six per cent of the total revenue budget for the year 2023. Oil and gas are seeing an increase of about 96 per cent compared to oil and gas revenues for 2022.
• Salaries and wages of government employees - 28%
• Operating expenses: 30%, decreased by 4% compared to the 2022 budget
• Support and aid: 13%, increased by 5% compared to the 2022 budget
• Loan repayments and interest: 13%
Why is the 2023 budget 12 per cent lesser than last year?
According to Sheikh Mohammed bin Saud Al Qasimi, the budget has been drafted using the latest technologies that stimulate economic development and financial sustainability.
The budget also considers citizens' growing interest in resources and human energies. The budget also controls and rationalises spending in areas that may not add value to the competitiveness and financial sustainability index. In turn, he explained, it would stimulate the efficiency of managing government spending by government agencies in Sharjah.
"That is why expenditures decreased by 12 per cent from the 2022 budget, but without affecting the most important areas. These include employment, economic and social development," explained Sheikh Mohammed. However, the 2023 budget ensures the best-distinguished services for citizens and residents to achieve the well-being and happiness of society,
Sheikh Mohammed bin Saud Al Qasimi also said all budget indicators drafted are within international financial standards regarding inflation rates and sectoral spending. Policy frameworks have been created to control government spending.
