His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, may God bless him, in his capacity as Ruler of Dubai, has adopted a three-year budget cycle from 2020 to 2022, with a total expenditure of 196 billion dirhams, in continuation of the approach of the Dubai government in promoting The total economy of the emirate.
The budget cycle for the three years came to meet the aspirations of the future, and confirmed Dubai's determination to continue to delight the community and stimulate entrepreneurship. The financial plan highlights the interest of the Dubai government in providing the highest levels of economic stability and stimulus to the business sectors in the emirate, by giving a clear picture of the government's economic goals during the next three years, which supports medium-term planning for the emirate's economic sectors and provides a clear view of the private sector working in it.
In the same context, His Highness Sheikh Mohammed bin Rashid Al Maktoum adopted Law No. (12) for the year 2019 regarding the fiscal year 2020 budget, with a total expenditure of 66.4 billion dirhams, to become the largest budget in the history of Dubai, and it comes to meet the emirate’s ambitions to stimulate the macro economy and support the establishment of "Expo 2020 Dubai" to be the special and most prominent session in the history of the largest and most prestigious exhibition in the world.
Dubai continues in the budget for fiscal year 2020 to pay attention to social services, which include health, education, culture and social housing, in addition to developing a social benefits fund and supporting and stimulating families, which made it one of the best cities for living in the world.
On this occasion, Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance in Dubai Government, pointed out that "the elaboration of tight plans" was one of the most prominent commandments of His Highness Sheikh Mohammed bin Rashid Al Maktoum ten of the government administration, and that the Dubai government, represented by the Department of Finance, was inspired by this command In launching the budget cycle 2020-2022, confirming the department's endeavor to continuously develop the performance of the general budget in order to confirm financial sustainability and work to stimulate entrepreneurship in the emirate, by enhancing the incentives of the business sector in the emirate for the next three years.
Al Saleh affirmed that the Dubai government has taken a three-year medium-term financial planning approach and announced a financial plan, the first in its history, that came in implementation of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and President executive board.
He added that Dubai develops its financial plan annually, to provide economic incentives that have an impact in attracting more investments and work to improve the emirate's competitive position, and implement its benefits and targets from the strategic plan 2021 and beyond, explaining that the fiscal year 2020 budget was approved with a total of expenditures that exceeded last year's expenditures by 16.9 Percent, in support of Dubai Vision 2021 and Expo 2020 Dubai, as well as moving forward in supporting the Emirate's macroeconomic.
The Director General of the Department of Finance said that the Dubai government may be able to achieve an operating surplus of 1.96 billion dirhams as a result of adopting disciplined financial policies, which contributes to developing the infrastructure programs of the emirate and confirms the financial sustainability policy pursued by the emirate.
On his part, Aref Abdul Rahman Ahli, Executive Director of the Planning and General Budget Sector in the Finance Department, confirmed that the fiscal year 2020 came in response to the requirements of Dubai Plan 2021 and beyond, saying that it expresses transparently the stable financial position of the emirate, through the implementation of disciplined financial policies that depend on the best International practices in this regard. My family stressed that achieving an operational surplus is what achieves the desired financial sustainability of the emirate, adding that the Finance Department “seeks to develop programs concerned with raising the efficiency of government spending by launching a unified procurement program and stimulating partnership with the private sector, along with its constant quest to develop and review the budget.”
Expected government revenues for the fiscal year 2020
It is expected that the Dubai government will achieve general revenues of 64 billion dirhams, an increase of 25 percent over the fiscal year 2019, despite the stimulus economic decisions made by the emirate, which would have reduced some fees, freeze the increase in any fee for a period of three years and not impose any fee New without new service.
These revenues depend on the current operations in the emirate, which Dubai has taken over the past decade in not relying on oil revenues, which represent 6 percent of the total expected revenues for the fiscal year 2020, and keenness to develop the government revenue structure, which would enhance the financial sustainability of the emirate .
Non-tax revenue from fees represents 60 percent of the total expected revenue, while tax revenue represents 29 percent, and government investment return revenue represents five percent of total expected revenue.
Jamal Hamed Al-Marri, Executive Director of the Central Accounts Sector in the Department of Finance, stressed that the department is sparing no effort to consolidate the elements of government competition for the emirate, indicating its continuous keenness to develop programs that improve the performance of public finance and achieve financial excellence. This year in the implementation phase of implementing international accounting standards in the public sector, supporting the government decision-making process, ensuring the continuity of government financial efficiency, and improving the quality and comprehensiveness of financial reports, in line with the Dubai Strategic Plan 2021, until its position consolidates this pillar Uncle of the pioneering approach in government work based on efficiency, accountability and creativity, in addition to this development will make Dubai the first government in the region to implement international standards for government accounting, and will have the greatest impact in the implementation of the budget and the development of ways of outstanding government performance.
Expected government expenditures for the fiscal year 2020
The announcement of the Dubai government on the largest budget in its history sends a clear message to the business community that Dubai is pursuing an expansionary fiscal policy, which gives great confidence to the emirate's economy and contributes to attracting more direct investments to it. This budget serves the requirements of population growth and benefits arising from the hosting of Expo 2020 and the continuous development of infrastructure, and all other goals contained in the Dubai Plan 2021, aimed at raising the level of the welfare and happiness of citizens and residents in the emirate, in order to meet the directions of good leadership.
Salaries and wages constituted 30 percent of total government expenditures, according to the requirements of the new human resources law, and grant and support expenditures constituted 24 percent, to meet the requirements of human development and provide adequate support to citizens and government agencies that provide public services to the residents of the emirate.
The government has approved an amount of 8 billion dirhams, to maintain the size of infrastructure investments consistent with Dubai's aspirations to be the world favorite city for residency, in conjunction with the completion of some projects and activation of the public-private partnership law and the development of project financing mechanisms in the Dubai government through financing means Long term. The percentage of spending on construction projects reached 12 percent of government spending, indicating the continued development of infrastructure to host the Expo, which will then remain in place to serve all economic and social sectors in the emirate.
Dubai announced for the first time a special reserve of 3 percent of the total expected expenditures, in accordance with the principle of hedging and preparing for the extension of the Expo period, and achieving the best hosting in the history of the Expo, as usual, Dubai in its desire to dazzle the world.
Dubai maintained a debt service rate of no more than 5 percent of its total expenditures, as a result of adopting a disciplined financial policy that ensures that the implementation of the budget is free of any financial constraints.
Sectoral distribution of government expenditures
The fiscal year 2020 budget showed the government's interest in the human being that His Highness Sheikh Mohammed bin Rashid Al Maktoum sees as the true wealth of the homeland. The spending on the social development sector in the areas of health, education, housing, women and child care, adoption of initiatives to develop reading, translation, software preparation, and attention to youth and sports represented 30 percent of the total government spending in the 2020 budget.
The government's interest in the security, justice and safety sector was embodied by allocating 19 percent of the total spending to support this sector and develop it and make it able to play its role professionally and proactively until it became one of the sectors that the emirate boasts globally, thanks to the progress and prosperity achieved by the emirate making it a destination of choice for tourists and those who want to work And investment.
Dubai's interest in infrastructure and its continuous development has pushed for this sector to acquire 46 percent of total spending, which shows the emirate's seriousness in dealing with future benefits, support for small projects, interest in entrepreneurship, and the promotion of the nurturing environment for micro-projects and their sponsorship.
The emirate also paid attention to supporting the public services sector, government excellence, creativity, innovation and scientific research by allocating 5 percent of total government spending to develop performance and consolidate a culture of excellence, innovation and creativity.