Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has approved the emirate’s budget with Dh47.3 billion ($12.8 billion) expenditure, up from Dh46.1 billion in 2016.

The increase of three per cent reflects the expansion of the Government of Dubai and its determination to support the local economy, said Abdulrahman Saleh Al Saleh, director general, Department of Finance for the Government of Dubai.

“The 2017 budget was adopted with a deficit of Dh2.5 billion, representing 0.6 per cent of the GDP of the emirate,” added Al Saleh. “The deficit resulted from the reclassification of the budget and the 27 per cent increase in infrastructure expenditure.”

Projected government revenues for 2017

The restructuring of the budget and the new classification of entities resulted in a decrease in projected revenue figures for the fiscal year 2017 compared to 2016. However, comparing revenue items for 2017 with 2016 make it obvious that the government expects an increase in fees revenues by six per cent. This is due to the economic growth of the emirate and the growth achieved in sectors such as tourism and retail.

The government fees represent 76 per cent of government revenues, while tax and customs revenues represent the percentage of 16 per cent.

Oil revenues were limited to only six per cent of total government revenues. Two per cent of total government revenues will be coming from government investment returns, as a vital contribution to supporting economic growth.

Projected expenditures for 2017

The budget has allocated resources for 3,500 new job opportunities. The allocation of salaries and wages represents 33 per cent of total expenditures, while general, administrative, grants and support expenditures represents 47 per cent of the total expenditures.

Infrastructure allocation has increased by 27 per cent from what has been allocated for the fiscal year 2016, to reach 17 per cent of total government expenditure, reflecting the emirate's concern for the gradual implementation of the Expo 2020 projects, in order to achieve Dubai Plan 2021 targets.

On the other hand, Dubai has managed to achieve financial sustainability by achieving an operating surplus of Dh2.9 billion, highlighting the emirate’s ability to finance all operational expenditures and achieve a surplus without the need for oil revenues.

The expenditure on Social Development Sector including health, education, housing and community development areas represents 34 per cent of the total expenditure of the budget.

The government’s concern for the Security, Justice and safety has been affirmed by allocating 21 per cent of the total expenditure to support this sector, develop it, and make it able to play its vital role professionally and proactively. – TradeArabia News Service