15.9 billion dirhams are expected to be collected from “taxes and investment returns.”

21 billion dirhams expected revenues for "government services fees" this year

A parliamentary report prepared by the "National Finance" praised the extent to which the general budget of the Union for the current year complies with constitutional obligations.

From the source

A government report prepared by the Ministry of Finance stated that the revenues of the general budget of the federation for the fiscal year 2023 amounted to 63.613 billion dirhams, while the expenditures were estimated at 63.06 billion dirhams, with a surplus exceeding 547 million dirhams, pointing out that the expected revenues within the general budget include service fees for the federal authorities in a total 21 billion dirhams, UAE contributions totaling 19 billion dirhams, in addition to the federal franchise amounting to a total of 7.3 billion dirhams, as well as 15.9 billion dirhams expected to be collected this year, at 9.7 billion dirhams from “taxes” and 6.2 billion dirhams from “investment returns.”

A parliamentary report prepared by the Financial, Economic and Industrial Affairs Committee of the Federal National Council praised the extent to which the general budget of the Federation for the current year complies with constitutional obligations, especially with regard to its inclusion of an estimate of revenues and expenditures for the goals and operational plans necessary to achieve the goals in their entirety, as well as allocating amounts of revenues for spending on construction projects. and reconstruction, internal security and social affairs.

The report stated that by comparing the budget estimates for the current year with the estimates for the budget for last year, it is noted that the budget for the past year included a deficit between expected revenues and expected expenditures of approximately three billion and 500 million dirhams, while the budget for the current year has a surplus between expected revenues and expected expenditures. 547 million dirhams, pointing out that the expected revenue growth rate is 11%, compared to 3.9%, the expected expenditure rate from the federal government.

The report stressed that the existence of a surplus of more than half a billion dirhams in the federation's budget for the current year, and growth in revenues and expenditures, after a deficit in budget revenues and expenditures for two consecutive years, is a positive indicator of the quality of government performance in general.

It may also refer to the success of the federal government in achieving its strategic goals.

The report praised the approach taken by the UAE government with regard to determining the expenditures of the expected increases in federal revenues, and the expenditure priorities indicated by this, pointing out that the effective approach to the governance of expenditures in the 2023 budget is based on a comparison between the approved appropriations, according to the functional classification of the current year's budget with The appropriations for the functional classification of the last year's budget, which contributes to determining the aspects of the increase in expenditures compared to the priorities in the budget expenditures, and reflects positively on the evaluation of the financial appropriations for the strategic objectives in an effective and accurate manner.

It also contributes to the accurate testing of budget implementation by accurately evaluating the implementation of strategic objectives.

4 reasons for high budget revenues

A parliamentary report attributed the increase in the expected revenues of the federation's general budget to four main reasons, the first of which is the increase in tax revenues expected to be collected this year over last year's tax revenues by more than half a billion dirhams.

The second is the increase in the UAE's contribution to budget revenues by about one billion dirhams, compared to its contribution last year.

And the increase in the contribution of service fees to federal entities by nearly six billion dirhams, to top the revenue increase items, in addition to the increase in the contribution of retirement contributions to the revenues of this year’s budget, by nearly 100 million dirhams. 

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