Sheikh Mohammed approves Dubai’s AED47.3bn 2017 budget
* Budget targets creation of 3,500 new job opportunities in 2017
* Finance budget will see a deficit of AED2.5bn
* General budget will have an operating surplus of AED 2.9bn
Dubai’s ruler has approved a budget of AED47.3 billion for the emirate, which targets creation of 3,500 new job opportunities in 2017.
Surpluses and deficits
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Wednesday, endorsed the Department Of Finance’s budget, which will see a deficit of AED2.5bn.
The general budget will have an operating surplus of AED 2.9bn and it features a significant rise in infrastructure spending by 27 per cent compared to 2016.
Abdulrahman Saleh Al Saleh, Director General, Department of Finance, has said that the 2017’s budget expenditures recorded an increase of three per cent from the expenditures approved for the previous year.
“The 2017 budget was adopted with a deficit of AED 2.5bn, representing 0.6 per cent of the GDP of the emirate,” added Al Saleh.
“The deficit resulted from the reclassification of the budget and the 27 per cent increase in infrastructure expenditure,” he said while referring to the restructuring of the emirate’s budget earlier this year.
Fees and fines represent 76 per cent of government revenues, while tax and customs revenues make up 16 per cent. Oil revenues were limited to only six per cent of total government revenues. Meanwhile, two per cent of total government revenues will be coming from its investment returns.
The allocation of salaries and wages represents 33 per cent of total expenditures, while general, administrative, grants and support expenditures form 47 per cent of the total expenditures.
The expenditure on the social development sector, including health, education, housing and community development areas represents 34 per cent of the total expenditure of the budget.