The strong recovery of government revenues...and the acceleration of spending to pre-pandemic levels

«Finance»: 7.4 billion dirhams, an increase in workers' compensation during the second quarter

• Government revenues for the second quarter increased by 30.3 billion dirhams, representing a growth of 34%.

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• Workers' compensation ranks second in government spending after spending on goods and services.

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The latest data issued by the Ministry of Finance for the second quarter of this year revealed the strong recovery of government revenues, as well as the acceleration of spending on various projects, service sectors and community subsidies, gradually approaching the levels before the "Corona" pandemic.

Government spending

According to the aggregate government spending figures, which include the expenses of the federal government, in addition to the spending of local governments, the compensation of workers in the state increased during the second quarter of 2021 alone, to reach 32 billion dirhams, an increase of 7.4 billion dirhams from the first quarter, which recorded 24.6 billion dirhams. Equivalent to a growth of 30% during a three-month period, which reflects an increase in employment, and in line with a previous report issued by the Central Bank, which indicated that the number of jobs rose to higher than the levels of the first quarter of last year, which preceded the spread of the pandemic.

Compensation of workers in the state ranks second in government spending, directly after spending on goods and services, which amounted to 32.8 billion dirhams during the same quarter.

Subsidies and revenue

Also, according to "Finance" data, financial subsidies increased during the second quarter of this year to 7.9 billion dirhams, compared to 6.7 billion dirhams during the first quarter of this year.

Statistics showed an increase in government revenues for the second quarter by 30.3 billion dirhams, representing a growth of 34%, recording 119.3 billion dirhams, compared to 89 billion dirhams during the first quarter of 2021.

expenses

On the other hand, consolidated government expenditures during the second quarter of this year amounted to 96.6 billion dirhams, compared to 73 billion dirhams during the first quarter, an increase of 23.6 billion dirhams, equivalent to a growth of 32.3%.

The data indicated that revenues exceeded expenses during the second quarter, with a surplus of 22.7 billion dirhams, as revenues amounted to 119.3 billion dirhams, compared to expenses of 96.6 billion dirhams.

taxes

On the revenue side, tax revenues constituted the largest share of government revenues, with a value of 47 billion dirhams during the second quarter, compared to 37.6 billion dirhams during the first quarter of this year.

workers compensation

According to international standards, workers' compensation includes salaries, wages, allowances, bonuses, travel tickets, health insurance, end of service benefits, cash fees and commissions, pensions and social assistance.

• 96.6 billion dirhams of government spending in the second quarter of 2021.

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