Mohammed bin Rashid approves the general budget cycle of the Dubai government for the years 2023-2025
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of the Emirate of Dubai, approved the general budget cycle of the Dubai government for the fiscal years 2023-2025, with total expenditures of 205 billion dirhams.
The budget cycle came to meet the aspirations of the future and confirm Dubai's determination to continue developing and stimulating entrepreneurial activities, attracting more foreign investments, achieving welfare for society and meeting its requirements, and consolidating the emirate's position as a land of opportunities and innovation.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai, affirmed that the new budget reflects the strong performance of various economic sectors and confirms Dubai's determination to continue developing its capabilities in various fields with a focus on the social dimension, in parallel with work to increase Economic growth rates and taking the partnership between the public and private sectors to new levels in which it provides a broader scope for private sector institutions and supports them to lead the indicators of economic growth.
His Highness said: "We are working under the directives of His Highness Sheikh Mohammed bin Rashid in order to achieve the interest of the citizen, support the business sectors, and ensure the best services for the resident and visitor... The budget reflects the extent of interest in continuing to develop the infrastructure in Dubai, especially in the health and education sectors to keep pace with the requirements of the next stage and to achieve ambitions." The great development of the emirate, in parallel with the development of the digital infrastructure... The government works within financial sustainability programs and seeks to give Dubai more advanced positions in global competitiveness indicators.
The financial plan for the next three years 2023-2025 shows the extent of the Dubai government's interest in providing the highest levels of economic stability and stimulation to the business sectors in the emirate, by giving a clear picture of the government's economic goals during this period, which supports medium-term planning for the economic sectors in the emirate and provides a clear vision for the private sector in it. .
His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, issued Law No. (23) of 2022 regarding approving the general budget of the Dubai government for the fiscal year 2023, in which government expenditures are estimated at a total of 67.5 billion dirhams, which reflects the emirate's recovery and constitutes a starting point. To meet its ambitions to stimulate the macro-economy and support the objectives of the Dubai 2030 Strategic Plan Development Project.
In the fiscal year 2023 budget, Dubai continues to pay attention to social services and the development of the health, education and culture sectors. The budget also gave the citizen housing sector great importance through the Citizens Housing Program in Dubai within a plan for the next twenty years.
The budget focused on developing the social benefits fund to support families, people of determination and people with limited income.
The Director General of the Department of Finance in the Government of Dubai, Abdul Rahman Saleh Al Saleh, said that the general budget cycle for the fiscal years 2023-2025 confirms financial sustainability and stimulates entrepreneurship in the emirate, indicating that the three-year budget cycle sends a stimulating message to business sectors, stressing the Dubai government's keenness to develop its plan. financial yearly, in line with global developments, which provides economic incentives that attract investments, enhances the emirate's competitiveness, and contributes to the implementation of the entitlements and targets within the development project of the Dubai Strategic Plan 2030 and beyond.
Al Saleh added: "The budget for the fiscal year 2023, which was approved with a total expenditure of 67.5 billion dirhams, came to meet the requirements and keep pace with the changes imposed by global economic inflation, and the beginning comes within an integrated plan to implement the project to develop the strategic plan for Dubai 2030 and achieve the vision of His Highness Sheikh Hamdan bin Mohammed bin Rashid." Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, who directed increasing government support for families and people of determination, developing government work, increasing institutional agility and enhancing global competitiveness to attract more foreign investments.
The Director General of the Department of Finance also affirmed the Dubai government's commitment to the directives of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, in terms of adopting disciplined financial policies that achieve financial sustainability for the emirate, work on the governance of financial resources and contribute to increasing growth rates. The economist.
government revenues in 2023
The Dubai government expects to achieve public revenues estimated at a total of 69 billion dirhams, an increase of 20% over the fiscal year 2022, as a result of the emirate’s rapid recovery from the consequences of the global pandemic and the success of the measures taken to deal with it, as the UAE and Dubai are considered among the first and fastest countries and cities in the world. The world has achieved the best rates of recovery from the pandemic, which is evident in the increase in the volume of tourism flows and the high rates of air traffic and economic activity in the emirate.
The budget for the next fiscal year shows that oil revenues represent only about 5% of the total expected revenues for the year 2023, which confirms the financial sustainability of the emirate.
Projected government expenditures in 2023
Projected government expenditures in 2023
The Director General of the Department of Finance in the Government of Dubai, Abdul Rahman Saleh Al Saleh, indicated that Dubai's solutions are in advanced ranks among the global indicators for the best cities for living and working and the best global tourism and investment destinations, which led to an increase in population growth rates, which had an impact on the rise in the standard of living and the continued development of the infrastructure. Infrastructure, and work to raise the level of well-being and happiness of citizens and residents in the emirate, in fulfillment of the directives of His Highness the Ruler of Dubai in this regard.
The budget sends a message to the business community that Dubai is adopting an expansionary fiscal policy, which establishes confidence in the emirate's economy and contributes to attracting more direct investments to it.
Grant and social support expenditures account for 24% of total budget expenditures for the fiscal year 2023, and general and administrative expenditures account for 24% of total expenditures, while the government approved 7% of total government spending for construction projects, which gives a strong indication to the private sector of Dubai's continued development of its infrastructure. Infrastructure and proposing strategic development projects, in order to achieve the requirements of human development and provide support for citizens and residents and the infrastructure of the Emirate.
Dubai has been keen to keep in mind the precaution for any emergency conditions that may result from the succession of global crises, by including in the budget a special reserve of 5% of the total expected expenditures, in implementation of the principle of preparing for emergency programs during the implementation of the financial plan for the various sectors and activities in the emirate.
In this context, Dubai maintained a debt service ratio that does not exceed 6% of its total expenditures, as a result of its disciplined financial policy, which does not constitute any obstacles to the emirate's public finances.
Sectoral distribution of government expenditures in 2023
Sectoral distribution of government expenditures in 2023
The fiscal year 2023 budget showed the extent of the government’s interest in citizens, as 34% of total government spending goes to the social development sector in the areas of health, education, scientific research, housing, caring for needy families, caring for women and children, adopting reading, translation and programming initiatives, preparing youth, developing sports, And caring for senior citizens and retirees, and caring for people of determination, with an increase of 4% over the 2022 budget.
Emphasizing that Dubai is the best city in the world to live, work and visit, the Dubai government has allocated 20% of the total spending to the security, justice and safety sector to support and develop this sector and make it able to perform its mission professionally and proactively as one of the vital sectors that is a source of pride for the emirate globally.
Dubai's interest in infrastructure and its continuous development had the greatest impact on the UAE's attainment of an advanced position globally in global competitiveness. Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, gardens, renewable energy sources and waste treatment facilities, accounted for 41% of total spending. , which shows how serious the emirate is in dealing with future entitlements.
The budget also shows the government's keenness to support small projects, interest in entrepreneurship, and provision of an incubating environment for microenterprises.
The Emirate has also paid attention to supporting the public services sector, government excellence, creativity, innovation and scientific research by allocating 5% of total government spending to develop performance and establish a culture of excellence, innovation and creativity.
Arif Abdul Rahman Ahli, Executive Director of the Planning and Public Budget Sector at the Department of Finance, said that the Dubai government's adoption of the medium-term financial planning method and the announcement of a three-year financial plan 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, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.
Ahli added that the budget for the fiscal year 2023 came in response to the requirements of the project to develop the strategic plan for Dubai 2030 and beyond, and a transparent expression of the stable financial position of the emirate, through the implementation of disciplined financial policies based on best international practices in this regard, especially in light of achieving an operating surplus of 4.6% of total government revenues, which achieves the desired financial sustainability for the Emirate, stressing that the Department of Finance will continue its efforts to develop government spending efficiency programs and work on developing the budget and reviewing it continuously.
For his part, Jamal Al-Marri, Executive Director of the Central Accounts Sector, referred to the Department of Finance's efforts to consolidate development and innovation by setting up smart collection programs for government service fees, smart financing for small projects, and developing the financial data platform, which provides financial data to the government, companies and individuals, which increases Emirate competitiveness.
Al-Marri stressed the department's continuous keenness to create and develop programs that enhance public finances and achieve financial excellence, as well as the application of international accounting standards for the public sector, which made Dubai one of the first governments to implement international standards for government accounting in the region, with its great impact on Demonstrating the results of budget implementation and developing ways of distinguished government performance.
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