Ruler of Dubai approves budget for the 2010 - expanded

Dubai, 7th Jan. 2010 (WAM) -- His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved the law of the fiscal year budget for the year 2010 of the government sector in the Emirate of Dubai.

The Public Budget of the Government of Dubai reflects Sheikh Mohammed trends assuring need to work within the framework of a fiscal policy which aims to raising economic growth rates and to overcoming the repercussions of the global crisis and in the same time commitment with the internationally recognized financial rules regarding the budget deficit and public expenditure management.

Dahi Khalfan Tamim, Commander in Chief of Dubai Police and Chairman of the Public Budget committee for the 2010 fiscal year, said that the Public Budget of Dubai Government is based on the vision of Sheikh Mohammed in elevating the level of economic and social prosperity for the people and residents of the Emirate, the need to continue developing the Emirate's infrastructure, to support the emirate's economy , as well as adhering recommendations of the Supreme Committee of Fiscal Policy, chaired by His Highness Sheikh Ahmed bin Saeed Al Maktoum by the continuation of working on fiscal stimulus to the emirate's economy through expansionary fiscal policy with a commitment to financial rules which are internationally accepted .

It is estimated that the budget will achieve a current surplus and maintain the budget deficit which should not exceed the budget deficit percentage approved by the Supreme Committee of the fiscal policy and to direct government spending to the aspects that are consistent with the strategic, economic objectives of the Emirate.

Director-General of the Department of Finance Abdul Rahman Al Saleh highlighted the Public Budget key features which are to achieve a current surplus of AED 1.9 billion as a result of the application of public spending management programs on the basis of efficiency, effectiveness and officials in government departments and agencies increasing awareness to work to achieve the optimal use of public funds.

The total government investment spending reached AED 10.7 billion AED, representing 30% of total government spending for the development and completion of infrastructure projects in accordance with the set plans.

Al Saleh said that the Dubai Government public budget represents a balance between the necessity to support and stimulate economic activity on the one hand and commitment to the financial rules and sound principles of public funds management on the other.

HIGHLIGHTS OF BUDGETHis Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, signed the law of fiscal year budget in 2010 for the government sector in the Emirate of Dubai. The Public Budget of Dubai Government reflects the guidance of HH assuring the need to work within the fiscal policy framework aiming to elevating economic growth rates , to overcome the global crisis repercussions and in the same time commitment to the internationally recognized financial rules regarding the budget deficit and public expenditure management.

The Public Budget main key features of this year are the continuation to work in the development and completion of the emirate's infrastructure projects. where an estimated government spending on infrastructure in the 2010 budget is AED 10.7 billion, representing 30% of total government spending in the framework of the emirate's government to increase total demand and moving the emirate's economy to the stage after the crisis.

It is estimated that the operating budget surplus will reach AED 1.9 billion. Achieving this surplus is one of the fruits of increasing efficiency of government spending without unbalancing the overall objectives of fiscal policy and . this surplus was achieved despite an increase in the number of workers in the public sector of 3.6% compared to last year (2009).

According to the Public Budget for 2010 it is estimated that government revenues will reach AED 29.4 billion. The government spending for the same year will reach AED 35.4 billion. (A noted a decline in estimated government spending in 2010 as compared to government spending in 2009 by nearly 6%, this is mainly due to the completion of many infrastructure projects, according to the government's plan).

The 2010 Public Budget comes under commitment of the internationally adopted financial rules which represents one of the main trends of the Emirate's Government in the public funds management. It is estimated that the deficit will reach AED 6 billion, which makes the deficit ratio to GDP does not exceeding 2% which is less than the maximum deficit allowed (3%) of GDP . The volume of the operating surplus for this year increased to reach AED1.9 billion .

Department of Finance in Dubai Government estimations indicate that the coming years will have a surplus in the public budget as a result of plan completion of Emirate 's infrastructure development in accordance with the directions of HH Sheikh Mohammed and in order to provide a great investment environment which is highly Excellent.

The distribution of government spending on various sectors in the 2010 budget was as follows: The estimated spending on the economic sector, infrastructure and transportation (RTA , Airport Foundation, Dubai Air Wing, Municipality and tourism) is AED 17.45 billion, which represents 49% of total government spending.

The estimated spending on the social sector and public services (health services, education, social development and Islamic affairs) is AED 8.108 billion which represents 23% of total government spending.

The estimated allocations to the security and justice sector (police, nationality and residence, the courts and public prosecution ) is of AED 6.985 billion, representing 20% of total government spending.

The estimated spending on support , transferring and government excellence sector is AED 2.809 billion which represents 8% of the total public expenditure.

The sectoral distribution of government spending reflects the balanced strategy of the Emirates' Government, which is based on two main rules. The first rule is to achieve high rates of economic growth, which brings more economic prosperity for the emirate residents as evidenced from the proportion of government spending-oriented to the economic sector.

Upgrading the welfare of the community members of would not be complete except by adhering to the social dimensions , that's why the attention to the social sector was clear through the allocations of government spending on social sector, public services, security and justice sector, which reaches 43% of total government spending.

This balance between economic and social aspects is a reflection of the vision of Sheikh Mohammed that "man is the real wealth of the nation." With regard to the economic distribution of government spending , the current spending reached AED 24.7 billion, representing 70% of total government spending, while investment spending (spending on infrastructure) reached AED 10.7 billion, representing 30% of total government spending.

Salaries and wages reached AED 12.3 billion, representing 50% of current spending and 35% of total government spending. The public management expenditure reached AED11.384 billion, representing 46% of current spending and 32% of total government expenditure. While capital expenditure reached AED 982 million, representing 4% of current expenditure and 2.7% of total government spending.

Copyright Emirates News Agency (WAM) 2010.