UAE Cabinet approves 2009 budget of Dh42.2 billion

Dubai: An extraordinary meeting of the UAE Cabinet presided over by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai on Tuesday approved the Dh42.2 billion Federal Budget for 2009.

The total outlay of this biggest ever budget is 21 per cent higher than last year's Dh34.9 billion.

Economists and business leaders said on Tuesday that the significantly higher budget this year once again proves that the UAE has the financial strength to withstand the global turmoil.

"The budget demonstrates that the country's finances are strong enough to withstand the global financial turmoil," said economist Dr Mohammad Al Asoumi.

"In recent weeks the government has announced a series of measures to strengthen its financial system," he added.

Earlier this month, the government pumped Dh70 billion into the country's banking system as part of a Dh120-billion package to boost liquidity in the banking system.

Last week, the government also guaranteed all bank deposits and inter-bank liabilities.

"This budget is a confirmation of the UAE's fiscal strength. The higher budget allocation will send positive vibes to the private sector," said Dr Nasser Al Saidi, Chief Economist of the Dubai International Financial Centre.

This year the Federal Budget has allocated Dh9.7 billion (23 per cent of the total outlay) and Dh15.6 billion (37 per cent) to the education and services sectors respectively.

"The significantly higher budget outlay this year is a clear signal to both the local and international business community that the UAE has the ability and the willingness to pursue the growth path," said Hamad Bu Amim, Director-General of the Dubai Chamber of Commerce and Industry.

As part of the budget meeting, the Cabinet was presented with a report on the projected revenues of government departments.

The report also contains the annual growth rates of income and expenditure over the past ten years.

The report shows that the income of ministries will grow in 2009 to about Dh24 million, up from the Dh7 million recorded in 1999.

Shaikh Mohammad expressed satisfaction with the early presentation of the budget and attributed this success to the efforts of all ministries.

The Vice-President urged all ministers to strive to improve the performance of their respective ministries to meet the challenges of modern times and enable the UAE to maintain its status as a nation of institutions, supremacy of the law and excellence.

He also urged his Cabinet members to remain persistent and not to direct the affairs of their ministries from behind their office desks but to personally follow up issues to serve the national interest.

The meeting was attended by Shaikh Sultan Bin Zayed Al Nahyan, Deputy Prime Minister, and Shaikh Hamdan Bin Zayed Al Nahyan, Deputy Prime Minister.

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