Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum has approved budget for the Emirate of Dubai for the year 2016 which is 12 percent more than previous year budget with no deficit and provides more than 3,000 job opportunities.
The budget will continue to stimulate economic growth and has total expenditure of Dh 46.1 billion, with an operating surplus of Dh 3.4 billion.
The 2016 budget directly applies directives as set by His Highness Sheikh Mohammed bin Rashid to 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 health and social care services for all citizens and residents.
Abdulrahman Saleh Al Saleh, Director General of Government of Dubai s Department of finance, said, "Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 12 per cent for fiscal year 2015, which pushes the principality's macroeconomic growth to be in line with the planned levels."
"The benefit of the budget has reflected the directives of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, who emphasised the need for attention to the social aspect and development of investment incentives, which contributed to the high ranking in global competitiveness."
"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," Al Saleh added.
Government revenue figures show Dubai's success in increasing public revenues for fiscal year 2016 by 12 per cent compared to revenues for the fiscal year 2015.
Revenue from government services, which represents 74 per cent of total government revenue, increased by 12 per cent compared to 2015. The increase reflects the projected growth rates for the principality, and the evolution and diversity of government services. This increase is due to the remarkable real economic growth by 2015 budget, with limited increments on certain government services, and other increments designed to regulate the real estate market.
Tax revenues represent 19 per cent of total government revenues, which include customs and taxes of foreign banks, according to the development outcome of the customs by the Emirate's economic growth.
The oil revenues accounts for only 6 per cent of government revenue, while net revenues decreased significantly due to the oil global low prices.
Distribution of government expenditure figures shows that wages and salaries represented 36 per cent of total government spending, underscoring the government's desire to support recruitment and human resource support in the emirate, as well as provision of 3,000 new jobs for citizens by working to balance the fiscal year 2016. This is a continuation of the settlement policy and creating new job opportunities for citizens.
General and administrative expenses, capital expenditures and grants and subsidies accounted for 45 per cent of total government spending in 2016. The government is keen to keep the development, advancement and support of government institutions to provide better government services for citizens and residents on its territory, as well as government support for housing bodies and institutions, sports and public welfare associations, charities and the media to achieve the well-being of citizens and residents and raise the rates of happiness community.
On the other hand, the government continues to support infrastructure projects by allocating 14 per cent of government spending to infrastructure, and the hard work of building excellent infrastructure contributes to making the emirate always attractive to investments. Dubai is planning to maintain the size of its investments in infrastructure over the next five years.
Figures contained in the budget for the year 2016, as well as the interest of the government of Dubai to continue dealing with loans seriously across routing 5 per cent of total spending for debt service, in support of the government's financial sustainability.
The government's interest in human, guided by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, who says "the human being is the wealth of the nation", clearly appears in the review of the distribution of government expenditure in key sectors. The expenditures on social development in the areas of health, education, housing and community development, 37 per cent of government expenditure, the government has taken to support social services through continued support for public benefits fund to support families with children, and maternal and child welfare, disabled persons, youth and sports clubs.
The budget of 2016 re-stressed the great support to the security, justice and safety sector, being one of the most important authorities for the community. The budget has allocated 21 per cent of government spending to support this vital sector.
Maintained sector of economy, infrastructure and transport in 2016 to the attention of the government, which has been monitoring the 36 per cent of government expenditure to this sector, which will contribute to realising the aspirations of the Principality to establish distinct infrastructure are constantly evolving and attracting investment.