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UAE Cabinet approves Dh43.6b federal budget for 2010
(WAM)

26 October 2009, 4:28 PM
ABU DHABI - An extraordinary meeting of the UAE Cabinet presided over by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai approved this morning a Dh43.6 billion federal budget for 2010. The budget represents an increase of 3.4% compared to 2009 and will be balanced with no deficit spending for the sixth consecutive year.

The approved budget, effective on the 1st of January 2010, reflects the UAE’s strategic priorities by focusing on social development, education and health; allocating a total of Dh9.8 billion towards projects in schools and higher education, representing 22.5% of the total figure. A further Dh7.6 billion or 17.5% of the total has been set for infrastructure development projects.

The 2010 budget, which had earlier been proposed by the finance and economy committee headed by His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, will be the largest in the UAE’s history despite the global economic environment. The budget continues a proven fiscal strategy that has allowed the UAE to develop a diversified income portfolio which in 2010 will include a total of Dh25.8 billion in revenues at the ministry and federal authority level, compared to revenues of Dh7 billion achieved in 1999.

41% Allocated for Social Development and 39% for Government Affairs.

The social sector will be a key focus for spending, with education, health, labour, social, Islamic, sports, youth and cultural affairs as well as Housing Programme receiving a combined Dh17.8 billion or 41% of the total. Defence, security, justice, foreign affairs and other federal authorities will receive Dh17.2 billion, or 39% of the budget.

Dh7.2 Billion and Dh2.7 Billion Towards public Education and Higher Education Respectively

Dh7.2 billion, a 16.5% share of the total, has been allocated to the Ministry of Education to continue its development plans within government schools. These include a number of initiatives such as the ‘Schools of Tomorrow’ and ‘Teacher of the Century’ programmes, as well as various educational infrastructure projects in ICT, health & safety, curriculum reform, facilities development and several projects to serve students with special needs.

Dh2.7 billion, a 6.2% share, will be spent in areas of higher education, research and development, supporting the different plans, programmes and initiatives being carried out by the Ministry of Higher Education and Scientific Research. These include overseas scholarships for UAE citizens, Emiratisation of the educational sector as well as the development of facilities within the UAE’s many universities.

Dh2.8 Billion for Health Services, Emiratisation of hospitals and Health Information System (HIS).

The budget share allocated to the Ministry of Health will be set at Dh2.8 billion, an increase of about Dh140 million over last year’s budget and one which aims to ensure service excellence. The ministry’s main priorities will focus on providing high quality health services to citizens as well as the development of new medical facilities, Emiratisation of the medical, technical and administrative cadres within the health sector and the implementation of an advanced Health Information System (HIS) connecting the nation’s health facilities.

Dh7.6 Billion Allocated to Balanced Development Across All Emirates.

In line with the government’s strategic goal of balanced development across all Emirates, the 2010 budget has set a total of Dh7.6 billion towards federal infrastructure development projects and programs such as roads and transport, medical facilities, housing and government facilities.

These include the following priority initiatives:

Dh1079.6 million towards the Sheikh Zayed’s Housing Programme

Dh497 million for ground transport infrastructure development such as:

o Dubai-Fujairah highway

o Development of the Dibba-Masafi road (phase 2)

o Development of the Dibba-Khorfakkan road

o General maintenance of other roads within the UAE

UAE-wide education and health buildings allocations amounted to Dh437 million which will be spent on the building of new primary and secondary schools, preventative medicine, medical and dental centres in different Emirates.

A further amount of Dh275 million has been set aside for the completion of various initiatives within the Ministry of Interior, Ministry of Justice, Ministry of Youth and Cultural Affairs and the Ministry of Social Affairs, including:

Police, Civil Defence and Immigration buildings

Ajman and Fujairah courts and public prosecutors buildings

Falaj al-Mu’alla courts building

Umm Al Quwain and Ajman cultural centres

Ras Al Khaimah, Dibba and Fujairah ladies’ centres

During today’s meeting, the cabinet also reviewed a report by the UAE Competitiveness Council on the progress of the United Arab Emirates in competitiveness reports for the year 2010.

In the WB doing business 2010 report the UAE is in the top 10 reformers, an important achievement. The overall global ranking of UAE has improved to 33 in 2010 from 47 in last year’s report. The changes have been made in broadly three categories:

? Starting a Business: The UAE’s rank improved from 118 to 44 as a result of scrapping the minimum capital requirement and a reduction in number of days and procedures.

The Cabinet instructed the UAE Competitiveness Council to place nationals at the focus of the process of development in the country as well as to make more efforts, recommend measures and means that would further improve the UAE’s ranking on the global competitiveness reports.

The Cabinet also approved a federal bill on combating begging and minimizes its negative impact on the community through strict punitive measures.


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