Education gets priority in Dh28.42b budget

Abu Dhabi: The UAE Cabinet yesterday approved a Dh28.42 billion federal budget for 2007, balanced with a zero deficit for the third consecutive year.

Income and expenditures are 1.96 per cent higher than in the 2006 budget of Dh27.87 billion.

Education will receive the largest allocation of Dh7.11 billion or 25 per cent of total expenditure, while security and healthcare are ranked second and third with 11.93 and 5.44 per cent respectively.

"In 2007 we are filing a balanced budget with no deficit for the third consecutive year," said Dr. Mohammad Khalfan Bin Kharbash, UAE Minister of State for Financial and Industrial Affairs, who announced the budget yesterday.

"Maintaining a zero-sum budget was the reason for implementing the performance and programme-based budget as a basis, in addition to the new budget law issued last year, which stipulates the necessity of drawing up a balanced budget," Kharbash said.

Each ministry has been granted maximum flexibility to determine its own priorities.

Totalling Dh9.19 billion, salaries comprise 33 per cent of the budget, while expenditures for goods and services amount to Dh3.66 billion.

Revenue increase

"The increase in budget figures is due to the rise in the ministries' revenues to Dh9.92 billion, as well as investment income to Dh3.67 billion," he said.

Abu Dhabi and Dubai contributed 52 per cent of the budget, while ministry revenues represented a 35 per cent, and the investment income 13 per cent.

"The Cabinet also considered major projects for the three coming years [up to 2009], as we are looking for a five-year budget planning," said Kharbash.

New jobs and ranks have been added to the healthcare sector, ministries of Foreign Affairs, Interior and Labour, as well as the civil service.

The budget allocates Dh434.8 million to the national road network and the improvement of the roads.

Establishing diplomatic and consular missions is also accounted for, as well as the building of hospitals and medical centres.