A report by Al-Watani: The state has the ability to forecast the "federation's budget" until 2040

22.6 billion dirhams are salaries and compensation for federal government employees during 2021

The draft law on "the Federation's general budget for the fiscal year 2021" was referred to "Al-Watani" as an urgent matter.

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The Council of Ministers allocated 22.6 billion dirhams to pay salaries or compensation to employees of ministries and federal government agencies, during the current year, by 39% of the total expenditures estimated in the Federation's general budget, estimated at 58 billion dirhams, while a parliamentary report of the Federal National Council revealed that the government can forecast its budgets Expected future until 2040, but take into account at the present time many variables in the global economy and surrounding conditions.

In detail, a parliamentary report by the Federal National Council stated that the Council of Ministers allocated 22 billion and 601 million and 100 thousand dirhams to pay the salaries or compensation of employees of ministries and federal government agencies during the current year, from the Federation's general budget, which was approved by the Council, finally, with a total of 58 billion dirhams, within A draft federal law regarding linking the Federation's general budget for the fiscal year 2021, which was received by the Council as a matter of urgency, explaining that the allocations for salaries and compensation for employees this year witnessed an increase of five billion and 134 million and 700 thousand dirhams over the compensation that was disbursed in the budget of last year, which It amounted to 17 billion and 466 million 400 thousand dirhams.

According to the indicators of public expenditures in the budget, which were mentioned in the report, employees' compensation and salaries represent the highest percentage in the budget, at 39% of total budget expenditures, followed by “commodity and service supplies and subsidies” at 25.3%, while the proportion of expenditures on “social benefits and benefits” was 13.3% And “other federal expenditures” by 13.5%, and “group assets” by 7%, in addition to “grants” by 1.9% of total public expenditures.

With regard to the distribution of public expenditures on the various sectors, the government affairs sector received 37% of the expenditures, followed by the social development sector by 33.2%, then the social benefits sector by 8%, "assets" by 3.7%, and then the infrastructure sector by 3.6% of the provisions, in addition to 13.5% for the item "Other federal expenses".

The report emphasized that the largest share of this year's budget allocations was for the social development sector and social benefits (41.6%), including 16.4% for "public and university education", 8.6% for "health", and 8% for "pensions", while it reached The percentage of expenditures allocated to “social affairs” is 5.9% of the total expenditures, in addition to 2.7% under the item “other services”.

The report stated that the government started in 2011 in planning the federation's budget with the experience of developing a budget for three years, provided that a report is issued about it every year. Five years for the budget, the first round of which (2017-2021) began, explaining that this year's budget is the last budget for the first five-year plan.

According to the report, the government has a mechanism through the Ministry of Finance that obligates all ministries and government agencies to forecast revenues, expenditures and needs for the next 10 years, and can even make forecasts of their expected budgets until 2040.

Two reasons for approving the budget

A report drawn up by the Financial and Economic Affairs Committee of the Federal National Council identified two reasons for accepting the draft law “Linking the Union’s General Budget for the fiscal year 2021”. The first is the committee’s assessment of the implications of the “Covid-19” pandemic, especially as Article (12) of Federal Decree-Law No. (26) ) Of 2019 regarding public finance, stipulates that the general budget is the financial program of federal entities, which includes their estimated financial resources and public expenditures estimated to be spent for a specific fiscal year, in order to achieve economic and social development through the optimal distribution and efficient use of resources, within the framework of the relevant federal strategy With the expenditures expected to be spent by the federal authorities during the next fiscal year, taking into account their balance, revenue and expenditure, and their development in light of the medium-term financial strategy (financial framework).

According to the report, the second reason is that the committee studied the means identified by the draft law to cover the difference between expenditures and revenues, and found that the first article of the bill states that the expected funding difference to maintain the balance of the Union’s general budget in the fiscal year 2021 project is dealt with through three procedures, It is the use of part of the government's cash reserve account, issuance of public debt instruments, and control of public budget expenditures, through procedures approved by the Council of Ministers.

• 58 billion dirhams, the general budget of the federation.

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