Dubai to raise 2016 spending 12% on balanced budget

(MENAFN- AFP) Dubai plans to raise spending by 12 percent next year, balancing that out with identical growth in revenue, on a budget of 46.1 billion dirhams ($12.6 billion), the government said Sunday.

This is the second year in a row that the Gulf emirate will have a deficit-free budget since the 2009 global financial crisis, when it came close to defaulting because of a crash in the real estate market.

Dubai, part of the United Arab Emirates, has the most diversified economy in the region and does not depend on oil, which is projected to account for only 6.0 percent of revenues in 2016.

The economy is heavily based on real estate, tourism and trade.

Spending will include 36 percent for wages, while general administrative expenses, capital expenditures and grants and subsidies account for 45 percent.

As much as 14 percent is allocated for infrastructure projects.

On the income side, fees for government services and fines are projected to make up 74 percent, taxes 19 percent and enterprise profits one percent.