Mohammed bin Rashid approves the general budget law of the government of Dubai, with expenditures amounting to 57.1 billion dirhams

Dubai adopts an expansionary fiscal policy in 2021 despite the Corona pandemic

picture

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, has approved Law No. (20) of 2020 regarding the general budget of the Dubai government for the fiscal year 2021.

The Dubai government’s announcement of the fiscal year 2021 budget, with expenditures amounting to 57 billion and 114 million dirhams, represents a clear message to the business community that Dubai is pursuing an expansionary fiscal policy, which would gain great confidence in the emirate’s economy, and contribute to attracting more direct investments to it. .

This budget comes in light of the exceptional economic conditions for the fiscal year 2020, and the crisis of the "Covid-19" pandemic, whose effects the global economy is still suffering.

According to the general budget, it is expected that the Dubai government will achieve public revenues of 52 billion and 314 million dirhams, despite the economic stimulus decisions made by the emirate.

Salaries and wages accounted for 35% of total government expenditures, while grants and support expenditures accounted for 26%.

According to the sectors, the budget allocated 41% of government spending for infrastructure and transportation, 31% for social development, and 22% for security, justice and safety.

Approving the budget

In detail, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, approved Law No. (20) of 2020 regarding the general budget of the Dubai government for the fiscal year 2021, with a total expenditure of 57.1 billion dirhams.

This budget comes in light of the exceptional economic conditions for the fiscal year 2020, and the emerging crisis of the Corona virus (Covid-19), whose effects the global economy is still suffering from.

The 2021 budget confirms that all means are available to deal with the crisis, restore the pace of economic growth, strengthen the system of support, social benefits and basic services, and adopt more appropriate policies to achieve a balance between growth, economic stability and financial sustainability in the medium and long terms, while continuing efforts to develop revenues, and raise Efficient spending, as well as an increased level of private sector participation.

Also, in the fiscal year 2021 budget, Dubai continues to pay attention to social, health, educational and cultural services and to invest in infrastructure services for the emirate, which made it one of the best cities for living in the world.

Public revenue

According to the general budget, it is expected that the Dubai government will achieve public revenues of 52 billion and 314 million dirhams, despite the economic incentive decisions made by the emirate, which would have reduced some fees, freezing the increase in any fees, and not imposing any fees. New without a new service.

These revenues depend on the ongoing operations in the emirate, which is what Dubai has followed throughout the past decade in not relying on oil revenues, which represent 4% of the total expected revenues for the fiscal year 2021, and keenness to develop the government revenue structure, which would enhance the financial sustainability of the emirate. .

Non-tax revenues from fees represent 59% of the total expected revenues, while tax revenues represent 31%, while government investment revenues represent 6% of the total expected revenues.

An expansionary policy

The Dubai government’s announcement of the fiscal year 2021 budget, with expenditures amounting to 57 billion and 114 million dirhams, represents a clear message to the business community that Dubai is pursuing an expansionary fiscal policy, which would gain great confidence in the emirate’s economy, and contribute to attracting more direct investments to it. .

This budget serves the requirements of population growth, the benefits resulting from hosting the "Expo 2020 Dubai", the continuous development of infrastructure, and support for reaching all the goals contained in the "Dubai Plan 2021".

The government's tendency to expand the outsourcing of services to the private sector also constitutes an expansion of the private sector's participation in economic development, which contributes to raising the level of well-being and happiness of citizens and residents in the emirate.

Salaries and grants

Salaries and wages accounted for 35% of total government expenditures, in accordance with the requirements of the new Human Resources Law, which contributes to family and community stability in light of the current crisis, and grants and support expenditures accounted for 26%, in order to meet the requirements of human and community development and provide public services For the residents of the emirate, which helps mitigate the effects of the pandemic.

Infrastructure

The government approved 9% of the total spending, to maintain the volume of investments in infrastructure in line with Dubai's ambitions to be the preferred destination globally for residence, in conjunction with the completion of some projects, the activation of the partnership law between the public and private sectors, and the development of project financing mechanisms in the government Dubai, through long-term financing means.

Reserve and liabilities

The Dubai government has allocated 1% of the total spending to the private reserve, in accordance with the principle of "precaution" and preparing for the effects of the crisis. It has also allocated 6% of the total spending to service the public debt, in order to follow a disciplined fiscal policy that ensures that the budget fulfills all obligations.

Sectoral distribution

The budget for the fiscal year 2021 showed the extent of the government's interest in the human being, which His Highness Sheikh Mohammed bin Rashid Al Maktoum considers the true wealth of the nation.

The plan to deal with the Corona pandemic also showed the government's keenness to provide treatment and precautionary measures, and to strive for the country to be among the first countries receiving vaccines.

Spending on the social development sector came in the areas of: health, education, housing, women and children care, adoption of reading development initiatives, software development, and interest in youth and sports, representing 31% of total government spending in the 2021 budget.

Security and justice

The government's interest in the security, justice and safety sector has been embodied in allocating 22% of the total spending to support and develop it, and make it able to play its role professionally and proactively, until it has become one of the sectors that the emirate is proud of globally, thanks to the progress and prosperity the emirate has achieved, making it a chosen destination for tourists and those who wish. In business and investment.

Dubai's interest in infrastructure, transportation and the continuous development of this sector has also pushed it towards its acquisition of 41% of total spending, which shows the emirate’s seriousness in dealing with future benefits, supporting investment projects, interest in entrepreneurship, and enhancing the incubator environment for projects.

Scientific research and creativity

The emirate has also taken care to support the public services sector, government excellence, creativity, innovation and scientific research, by allocating 6% of total government spending to developing performance, and establishing a culture of excellence, innovation and creativity, whose effects appeared when dealing with the pandemic, as the Dubai government ranked first in the world In remote work, and transforming government services into smart services.

The budget allocates 41% of government spending for infrastructure and transportation, 31% for social development, and 22% for security, justice and safety.

Government spending is a clear message that strengthens the business community's confidence in the emirate's economy, and contributes to attracting more direct investments.

Al Saleh: The resilience of the local economy during the pandemic

The Director General of the Department of Finance in the Government of Dubai, Abdul-Rahman Saleh Al Saleh, stressed that the Dubai Strategic Plan 2021 is a fundamental pillar for Dubai to continue its march towards the future, pointing to the government's implementation of programs that achieve structural, economic and financial reforms, and initiatives to diversify the economic base.

He said that these programs contributed to stimulating the growth of the gross domestic product, pointing to the role that this shift played in enhancing the resilience of the local economy during the pandemic crisis, especially with regard to investment in technical infrastructure that enabled the government and the private sector to respond quickly to work requirements within the framework of Digital transformation.

He added, "The repercussions of the crisis left an impact on public finances, especially with regard to declining revenues, which led to government measures being taken to rationalize operational spending, while maintaining the enhancement of investment spending."

The directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, to issue a package of economic incentives for the business sector in the emirate, to contribute to achieving institutional agility by structuring the government to achieve financial sustainability.

Ahly: Opening new horizons for local and foreign investment

The Executive Director of the Planning and Public Budget at the Department of Finance, Aref Abdul Rahman Ahli, said that the preliminary estimates for 2021 indicate a GDP growth of about 4%, driven by the assumption that economic activities will continue to recover during the year.

He affirmed that the government will continue its efforts to enhance the role of the private sector, make it one of the main engines of economic growth, and support the growth of small and medium enterprises, in conjunction with the government’s continued implementation of structural reforms aimed at diversifying the economy, improving the business environment, and opening new horizons for domestic and foreign investment.

Al-Ahly explained that the budget for the fiscal year 2021 came in response to the requirements of recovering from the pandemic and dealing with the postponement of Expo 2020 Dubai.

He added: “The 2021 budget transparently expresses the stable financial position of the emirate, by implementing disciplined financial policies based on best international practices in this regard, at a time when the Finance Department seeks to develop programs for raising the efficiency of government spending and stimulating partnership with the private sector, in addition to Its constant endeavor to develop the budget and review its implementation.

Al-Marri: Expanding smart financial collection applications

The Executive Director of the Central Accounts Sector at the Department of Finance, Jamal Hamed Al-Marri, affirmed that the department spares no effort to consolidate the elements of government competitiveness in the emirate, pointing to its continuous keenness to develop programs that improve the performance of public finance and achieve financial excellence.

He added: “The Dubai government's success in expanding smart financial collection applications has made it more agile in dealing with the pandemic, and the application of international accounting standards in the public sector had a significant impact in supporting the government decision-making process, ensuring continuity of government financial efficiency, and improving the quality of financial reports. And its comprehensiveness, in line with (Dubai Strategic Plan 2021) ».

He explained that «the Dubai government has continued to advance the digital transformation, through new programs prepared, launched and implemented by the Department of Finance with the relevant government agencies, such as the Treasury Program, Diamonds, Your Gate, and Bayan, which establishes Dubai’s position and makes it a pillar supportive of the leadership approach in government work based on competence. Accountability and creativity ».

It is noteworthy that the Department of Finance was established in the Government of Dubai, in accordance with Law No. (5) of 1995. It is responsible for overseeing all financial and accounting affairs of the government of the emirate.

Follow our latest local and sports news, and the latest political and economic developments via Google news