Sunday, Dec 27, 2015

Dubai: His Highness Shaikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai on Sunday approved Dh46.1 billion Dubai budget for the year 2016.

The zero deficit budget has been increased by 12 per cent compared to Dh41.17 billion in 2015.

The budget for the year has a an operating surplus of Dh3.4 billion and targets the creation of 3,000 new jobs and provides the fiscal stimuli necessary to boost the economic growth of the emirate.

“Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 12 per cent for fiscal year 2015, which pushes the principality’s macroeconomic growth to be in line with the planned levels,” said Abdulrahman Saleh Al Saleh, Director General of Government of Dubai’s Department of finance.

The 2016 budget’s main allocation is to the social sector, followed by infrastructure, security, justice and safety sector, respectively. The expenditures on social development in the areas of health, education, housing and community development accounts for 37 of government expenditure, while debt servicing gets 5 per cent of total allocation.

Revenue from government services represents 74 per cent of total government revenue. Tax revenues represent 19 per cent of total government revenues, which include customs and taxes of foreign banks. The oil revenues accounted for only 6 per cent of government revenue, pointing to the high level of economic diversification achieved by Dubai economy.

Numbers

12 per cent -- increase in total budgets

3000 -- target number of new jobs for nationals

By Babu Das Augustine Banking Editor

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