(MENAFN- Khaleej Times) The Dubai budget 2013 focuses on social development, infrastructure, transport, and economic sectors as more than 60 per cent (Dh21 billion) of the budget expenditure has been allocated for these sectors.
The Government of Dubai has planned to spend Dh9 billion on social development and Dh12 billion, or 35 per cent on infrastructure, and economic sectors.
"The approved budget reflects the directives of Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, on the implementation of approved financial plans to support all the strategic sectors of the Government of Dubai," Abdul Rahman Saleh Al Saleh, director-general of the Department of Finance, said in a statement on Monday.
The 2013 budget directly focus on a prudent fiscal policy that provides the stimuli necessary to economic growth in the emirate, raise the efficiency of government agencies to provide the best services, health and social care for the citizens and residents.
The gap in the budget of the fiscal year 2013 has been reduced by 18 per cent from 2012, where public revenues have been set at Dh32.62 billion, while public expenditures were assigned at Dh34.12 billion.
Al Saleh points to the possibility of balancing the 2013 budget but emphasises the government's preference to expand its expenditures in a bid to support the emirate's economy by increasing public spending for the fiscal year 2013 by 6 per cent over the 2012 budget, without sacrificing the strategic objectives of the government of reducing the deficit and achieving the balance in the general budget.
Revenues
The revenue figures above highlight the success of the Emirate of Dubai in increasing its public revenues for the fiscal year 2013 by 7.2 per cent compared to those of the previous year.
Government fees, representing 62 per cent of total government revenues, have increased by 9.8 per cent compared to 2012. The rise in fees revenue is due to real economic growth and reflects the expected growth rates in the emirate. It also reflects the development and diversity of government services, which allows the implemented policy of not raising any government fees in the emirate, as adopted post the global economic crisis.
Tax revenues representing 23 per cent of total government income which represent customs and foreign bank taxes show an increase of 15 per cent in 2013 over 2012. This increase indicates the development in the performance of customs. Moreover, the development and increase of foreign bank taxes is a further indicator of the evolving positive economic situation in the Emirate. Net oil revenues witnessed an increase of 11.8 per cent in the fiscal year 2013 owing to higher oil prices.
Expenditure
In government expenditures, salaries and wages are set at 39 per cent, affirming the government's support of human resources and the creation of 1,600 job opportunities for Emiratis.
General and administrative expenses represent 24 per cent, reflecting the government's commitment to further developing its institutions and its support to the provision of better government services to citizens and residents.
Subsidies and grants represent 11 per cent of total government expenditure and show a 67 per cent increase over 2012. These include housing subsidies, sports, non-profit organisations, charitable organisations, media and sports activities.
About 16 per cent of the government spending is allocated for the completion of infrastructure and developmental projects in the emirate as the government remains committed to its announced infrastructure projects which participate in economic growth and stimulate domestic and foreign investments. Although this reflects a 4.8 per cent decrease from 2012, it is due to the completion of several large projects. Going forward, the emirate intends to launch new projects to support Expo 2020 bid.
Expenditure by sector
The distribution of expenditures by key sectors emphasises this government's commitment to the individual, taking its queue from His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai's direction: 'people are the real wealth of the nation'.
This is reflected in 26 per cent of government spending being allocated to social development in the areas of healthcare, education, housing and community development.
Furthermore, the Dubai government supports social services through the establishment of Public Benefits Fund to support families, and the establishment of a fund, as directed by Shaikh Mohammed, to support small and medium-sized projects for the youth, with a view to promoting entrepreneurship among them.
In preparing the 2013 fiscal budget, it was essential not to lose sight of the security, justice and safety sector as 23 per cent are allocated for this vital sector which supports the wellbeing of all citizens to live in security and safety contributing to higher rates of economic growth and a heightened sense of citizenship.
Despite the completion of many of the larger projects, Dubai fiscal budget allocates 35 per cent for infrastructure, transportation and the economic sectors, as Dubai continues to grow and its government continues to support new projects.
Arif Abdul Rahman Al Ahli, executive director - budgeting and planning at the Finance Department, confirmed that while preparing the fiscal year 2013 budget, the government has adhered to the fiscal policy rules by using recurring revenues to finance recurring expenses and achieving an operational surplus estimated at Dh204 million contributing to the financial sustainability of the emirate.
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