AED181b Dubai budget approved

(MENAFN- The Arabian Post)

Dubai's general budget for the fiscal cycle of 2022-2024, with a total expenditure of AED181 billion supports Dubai's efforts to stimulate the macroeconomy and the objectives of the Dubai Strategic Plan 2030. The new general budget reflects the emirate's determination to accelerate post-pandemic economic recovery and achieve the leadership's broader goals to stimulate entrepreneurship, enhance society's happiness and consolidate Dubai's position as a land of opportunities and innovation.

The three-year budget cycle focuses on increasing economic growth rates by activating the public-private partnership ecosystem and supporting the private sector to drive economic growth. It also addresses the social aspects of healthcare and education, as well as digital infrastructure development and financial sustainability programmes.

Through its 2022 budget, Dubai continues to place a high emphasis on developing social services, and its healthcare, education and cultural sectors. The budget also pays attention to citizens' housing sector by raising the value of the housing loan to AED1 million and allocating more than 4,000 plots and houses with a total value of AED5.2 billion in the first phase of the housing programme for citizens in Dubai within a broader 20-year programme of AED65 billion.

The budget also focuses on developing the Social Benefits Fund by supporting families and people of determination, which is set to consolidate Dubai's position as one of the best cities in the world to live and work in.

Projected government revenues for 2022 The 2022 budget expects to achieve revenues estimated at AED57.55 billion, an increase of 10 percent over the expected revenues of the previous budget of the fiscal year 2021, as a result of the rapid recovery of Dubai and the effective measures taken to curb the pandemic. Dubai is one of the first cities in the world to achieve a rapid recovery due to the economic stimulus measures approved by the government that reduced some government fees for businesses and put a freeze on fee increases until 2023.

These revenues are based on ongoing operations in the emirate and do not rely on oil revenues. Oil revenues account for six percent of the total projected revenues for the fiscal year 2022, which creates the conditions for enhanced financial sustainability.

Non-tax revenues, which come from fees, account for 57 percent of the total expected revenues, while tax revenues account for 31 percent, and government investment revenues represent six percent of the total expected revenues.

Projected government expenditure for 2022 Salary and wage allowances of the 2022 budget account for 34 percent of total government spending, in accordance with the requirements of the new human resources law. Grant and social support expenditure accounts for 21 percent of all expenditure, to meet the requirements of human and community development and provide public services to the residents of the emirate.

The government has allocated an amount of AED5.2 billion for construction projects, despite the completion of Expo-related projects, the activation of the Public-Private Partnership Law and the development of project financing mechanisms in the Dubai government through long-term financing.

The government has also allocated nine percent of the total expenditure to maintain the volume of investments in infrastructure, in line with Dubai's aspirations to be the world's most preferred destination to live in.

Two percent of the total expenditure is allocated to the private reserve to support emergency preparedness programmes, while public debt accounts for six percent of the total expenditure, to follow a disciplined fiscal policy that ensures the budget fulfills all obligations.

Sectoral distribution of government expenditure The budget of the fiscal year 2022 reflects the government's commitment to the people. Government spending on the social development sector in areas of health, education, housing and women and children's care, as well as developing reading and coding initiatives and supporting athletes and people of determination, represents 30 percent of the total expenditure.

The government's concern for security, justice and safety sees 23 percent of the total expenditure being allocated to promote enhanced efficiency in the sector.

Dubai's keenness to develop its infrastructure and transportation, apart from hosting Expo 2020 Dubai, has led to an allocation of 42 percent of total spending to the sector. This reflects its pledge to deal with future commitments, support entrepreneurship and create an environment conducive for incubating micro ventures.

The emirate has also been keen to support the sectors of government excellence, creativity, innovation and scientific research by allocating five percent of the total government expenditure to develop performance and instill a culture of excellence.

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