DUBAI — Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum has approved Dubai’s 2016 budget with an operating surplus of AED3.4 billion.
The budget with no deficit is 12 percent higher than 2015. It is expected to provide 3,000 job opportunities and stimulate economic growth.
"The break-even point between government revenues and expenditures has come as a result of strict financial policies of the Supreme fiscal Committee, chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Committee, which focused on increasing spending for the development of the sectors of the economy, infrastructure, communications, security, justice and safety, government services and excellence, and social development," Dubai Department of Finance director general Abdulrahman Saleh Al Saleh said.
UAE state news agency WAM said Dubai government services, representing 74 percent of total government revenue, increased by 12 percent compared to 2015 with expected increments on certain government services and to regulate the real estate market.
A further 19 percent of the budget will come from tax revenues, including customs and taxes on foreign banks, while oil revenues will account for only 6 percent due to lower global oil prices.
In terms of distribution in 2016, 36 percent of total government spending will be on wages and salaries and the provisioning of the 3,000 jobs. General and administrative expenses, capital expenditures and grants and subsidies will account for a 45 percent of total government spending next year. A further, 14 percent of government spending will be allocated to infrastructure as part of a continued investment over the next five years and 5 percent will be allocated for debt servicing.
Social development in areas including health, education, housing and community development will account for 37 percent of government expenditure, WAM said. The budget has also allocated 21 percent of government spending to security, justice and safety. — Agencies
