Mohammad bin Rashid Approves 2012 Dubai Government Budget
The features of 2012 budget were as follows:
• Provide 2400 job opportunity
• Continue to stimulate growth and strengthen the financial sustainability
• Improve expenditure efficiency to provide a current surplus equal to 1 Billion AED.
• Government invests 5,9 Billion AED in infrastructure completion.
Media Office of the Government of Dubai in 26th December 2011:
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and the Ruler of Dubai approved the Government Sector Budget in Dubai for the year 2012. The budget came applying the directives of His Highness to focus on a prudent fiscal policy providing the necessary stimulus to economic growth in the Emirate, to the completion of development expenditures to determined government expenditure tracks in a manner consolidating financial sustainability.
A statement issued by the Media Office of Dubai Government - Department of Finance said that the 2012 Public Budget is based on a set of core principles particularly continuous efforts to raise the government spending efficiency by increasing productivity and improving economic and social returns.
The Budget also focused on diversifying the public revenue sources, increasing their returns, developing clear rules for transparency and fiscal discipline and all government departments continuing to implement the highest international Quality standards, especially in services.
According to the Department of Finance in Dubai, the gap in 2012 Public Budget between the Public Revenues 30,431 Billion AED, and Public Expenditures 32,258 Billion AED is estimated by 1,827 Billion AED, which came under the financial rules internationally recognized that the gap should not overcome 3 % of Dubai GDP, as it reached 0.6% of estimated Dubai GDP, which confirms that the government is continuing to follow a rational expansionary fiscal policy of which elements were drafted according to the directives of the Supreme Committee of Fiscal Policy in the Emirate. The decline in the deficit to 1,8 Billion AED with 53% from the fiscal year 2011 forecasts shows the Emirate is serious in dealing with the Public Budget deficit while maintaining the growth and support averages for social ,economic sectors and public services.
Within the 2012 Government of Dubai budget, the infrastructure, transportation and economic development sector took up 41 % of Total Public Expenditure. It contains a number of vital sectors including roads, transport, civil aviation, airports and tourism.
29 % of the Total Public Expenditure was allocated to the social development sector including areas of health care, education, housing and culture.
The Budget allocated 7 % of Total Government Expenditure for public services and government excellence sector, containing several key bodies including the Department of Finance, the Financial Audit Department, the Land Department, the Customs Department, and others. 22 % of Public Expenditure was allocated for security, safety and justice sector.
The Government Investment Expenditure is set to reach 5,9 billion AED representing 18 % of Total Public Expenditure in order to complete Development Expenditure, in accordance with the plans established reliable to contribute effectively in raising economic growth rates and stimulating domestic and foreign investments.
H.E. Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance in Dubai, indicated that all government establishments succeeded to ensure the possibility of a achieving a current surplus being 1 billion AED as a direct result of efforts to rationalize Government expenditure and to improve its effectiveness, also as a result of the increased awareness among officials in government departments and authorities by working to improve efficient management of public money.
The DG of DOF in Dubai said that Public Budget of Dubai Government in fiscal year 2012 reflects the directives of H.H. the Ruler of Dubai in continuing the development of infrastructure and macroeconomic support in Dubai, and taking into account ways to ensure social welfare to achieve sustainable growth goals through providing 2400 job opportunity and supporting the social, economic and public service sector, which is evident in the Public Budget tendency for these sectors.
Al Saleh said that Dubai government Budget was formulated in the framework of the Supreme Committee of Fiscal Policy recommendations under the chairmanship of H.H. Sheikh Ahmed Bin Saeed Al Maktoum, which focused on activating an expansionary fiscal policy in macroeconomic management in Dubai to enhance liquidity and to stimulate Aggregate Demand.
Al Saleh added that Dubai is gradually and in a deliberate plan is pursuing a set of policies that promotes financial sustainability, especially that most Development Expenditures are completed, which represent a major pillar and a core catalyst for economic growth taking Dubai Public Budget to the surplus stage in the future upon finalizing these projects and beginning to reap their fruits in terms of expansion and growth in economy, tourism and industry.