In his capacity as Ruler of Dubai, His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, has approved the Government of Dubai’s Budget Law No. (17) for the year 2016 for the emirate of Dubai’s 2017 general budget, with AED 47.3bn expenditures, according to the new budget classification.

Issued earlier this year, the Financial Regulations for the Government of Dubai Law No. (1) for the year 2016 has had a great impact on restructuring the emirate’s budget. The Financial Regulations Law identified new classification for the general budget acknowledging general, independent and extension budgets. The new classification allows each party to exercise its functions independently and more transparently.

General budget for 2017 features came as follows:

– New restructure
– Increase in infrastructure spending by 27%
– An operating surplus of AED 2.9bn
– More than 3,500 new jobs

The 2017 budget reflects Dubai Strategic Plan 2021 targets and future commitments. The budget features a significant rise in infrastructure spending by 27% compared to 2016. This comes as a translation of the directives of His Highness the Ruler of Dubai to raise the efficiency of infrastructure in Dubai in order for the emirate to become the first destination for work and tourism across all sectors.

The budget has also shown the government’s concern for social services, including healthcare, education, culture and housing, which contributed to the high rating of the UAE in global competitiveness indices, and ranking first in the happiness index regionally.

Abdulrahman Saleh Al Saleh, Director General, Department of Finance for the Government of Dubai said: “The Financial Regulations for the Government of Dubai Law, developed the general budget classification of the government entities. Some entities were put in a new order under the independent or annexed budgets, which led to the reduction of budget revenues and expenditures”.

Al Saleh, however, stressed that the 2017’s budget expenditures recorded an increase of three percent from the expenditures approved for 2016’s budget, which reflects the expansion of the Government of Dubai and its determination to support the local economy.

“The 2017 budget was adopted with a deficit of AED 2.5bn, representing 0.6% of the GDP of the emirate,” added Al Saleh. “The deficit resulted from the reclassification of the budget and the 27% increase in infrastructure expenditure.”

“Law no. (22) of 2015 regulating Partnership between the public sector and the private sector, forms an ideal platform to build modern practices in the management of financial resources efficiently and effectively. Over the coming years, this law will contribute in the implementation of some public projects in partnership with the private sector, which will enhance creativity and innovation, raise the government’s performance rates, achieve government efficiency, and enhance transparency.”..see more

source: khaleejtimes