Dubai's ruler on Sunday approved a 2012 government budget which projects spending at 32.26 billion dirhams ($8.78 billion), down from 33.68 billion dirhams planned for 2011.

The budget sees a deficit of 1.83 billion dirhams ($498.23 million), according to a government statement, smaller than the 3.78 billion dirham deficit planned for 2011.

The United Arab Emirates member's shortfall accounts for around 0.61 percent of its 2010 economic output, according to Reuters calculations.

The 2011 budget gap had been originally projected at 3.78 billion dirhams, or 1.3 percent of gross domestic product. - Reuters