Despite the decline in revenues to the lowest level in 6 years due to the “closure”

«Finance»: 345.5 billion dirhams of government spending at the height of «Corona»

«Finance»: Good levels of spending on the basic sectors.

archival

The combined government spending, which includes expenditures estimated in the federal budget, as well as the budgets of the seven emirates during the 12 months (between March 2020 and March 2021), which witnessed the peak of the spread of the emerging Corona virus “Covid 19”, and closures, amounted to 345.5 billion dirhams , compared to 313.8 billion dirhams in revenues, which means an additional 31.7 billion dirhams was pumped on top of the revenues collected.

government revenue

Finally, data issued by the Ministry of Finance showed that the level of government revenues collected during the monitoring period recorded its lowest level in more than six years due to the closures witnessed by the global economy, and with it the country's economy, recording 313.8 billion dirhams.

According to the data, the government has maintained good levels of spending on basic sectors, including employee salaries, goods and services, as well as financial subsidies, grants, and social benefits.

proactive measures

Since the outbreak of the "Covid-19" pandemic globally, the government has taken a number of proactive measures to combat it and limit its spread, as well as take all necessary preventive and remedial steps to overcome the direct and indirect effects of its spread, including reducing operational costs in government agencies, to provide financial space to increase Spending on health care, and facing cuts in government revenues, due to the economic slowdown caused by the spread of the pandemic.

Actions taken in this regard included reprioritizing spending on ongoing construction projects, delaying hiring, reconsidering spending on non-urgent conferences, and training.

stimulus packages

In terms of financial policies, the UAE government at the federal and local levels, during the pandemic year, provided large stimulus packages amounting to 26.5 billion dirhams ($7 billion).

The packages included a variety of measures providing debt relief and payments to businesses and households alike;

The Securities and Commodities Authority also launched a package of decisions to support the financial markets in the country and facilitate their transactions.

The stimulus programs also targeted the infrastructure sector, as the state government placed an urgent priority to ensure the continuity of the ongoing vital capital projects.

The Emirate of Dubai was able to maintain its position as the third global destination even during the outbreak of the pandemic for the period from January to May of this year, which was characterized by total inflows of 10 billion dirhams through 135 foreign investment projects.

In previous statements, the Ministry of Finance pointed out that the most important lessons learned from the spread of the pandemic, is the importance of reprioritizing public funds, and based on appropriate cost modeling, to reprioritize funds from the operating expenses of ministries according to their impact on the outbreak of the epidemic.

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