UAE keeps spending flat in 2017 federal budget

UAE approved $13.3 billion federal budget for 2017

  
Investors look at electronic display boards on the trading floor at the Dubai International Financial Market March 25, 2010.

Investors look at electronic display boards on the trading floor at the Dubai International Financial Market March 25, 2010.

REUTERS/Mohammed Salem
DUBAI, Oct 30 (Reuters) - The cabinet of the United Arab Emirates approved a 48.7 billion dirham ($13.3 billion) federal budget for 2017, state news agency WAM reported on Sunday, almost level with the original budget of 48.56 billion dirhams for 2016.

The UAE federal budget traditionally accounts for only around 14 percent of total fiscal spending in the country; the seven individual emirates, mainly oil-producing Abu Dhabi, provide the rest.

But the decision to keep federal spending flat suggests UAE authorities remain cautious about spending as low oil prices pressure state finances. The International Monetary Fund projects the UAE will post a consolidated fiscal deficit, including the federal government and all the emirates, of 3.86 percent of gross domestic product this year.

The cabinet also approved a 248 billion dirham federal budget for the five years through 2021, WAM said.

(Reporting by Andrew Torchia; Editing by Alison Williams) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))


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