Dh47 billion Dubai budget innovation driven

Dubai - His Highness Shaikh Mohammed bin Rashid Al Maktoum approves Dh47.3 billion budget for Dubai.

Dubai on Wednesday unveiled a Dh47.3 billion innovation-oriented budget for 2017 that will also see a 27 per cent surge in infrastructure spending as well as the creation of 3,500 jobs.
His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, approved the budget that allocates 34 per cent of the total spending for the social development sector, including health, education, housing and community development, and 17 per cent for infrastructure as the country steps up efforts for Expo 2020.
"The government has given its support to excellence, innovation and creativity sectors through the allocation of eight per cent of total spending to ensure performance development and assert the culture of excellence, innovation and creativity," a statement from the Government Media Office said.
While total spending is expected to increase 2.6 per cent, or Dh1.2 billion, compared to Dh46.1 billion in 2016, total revenue is expected to decline even as government revenue from fees is projected to increase six per cent due to economic growth and the growth of sectors, including tourism and retail.
Reflecting the targets and future commitments of Dubai Strategic Plan 2021, the budget features a significant rise in infrastructure spending by 27 per cent.
Oil revenue is projected to represent six per cent of the total government revenue while government fees represent 76 per cent of revenue, with 16 per cent coming from tax and customs. Two per cent of total government revenues will be from government investment returns, as a vital contribution to supporting economic growth.
Allocation for salaries and wages represents 33 per cent of total expenditure, while general, administrative, grants and support spending represents 47 per cent, according to the Media Office.
The budget aims to provide more than 3,500 new jobs, underscoring the government's keenness on creating further job opportunities to ensure the satisfaction of the society. The budget expects a deficit of Dh2.5 billion which represents 0.6 per cent of the emirate's total gross domestic product, according to Dubai's Department of Finance.
The 2017 spending plan reflects the government's concern for social services, including healthcare, education, culture and housing, which contributed to the high rating of the UAE in global competitiveness indices, and ranking first in the happiness index regionally.
He said the "Financial Regulations for the Government of Dubai Law," developed the general budget classification of the government entities. Some entities were put in a new order under the independent or annexed budgets, which led to the reduction of budget revenues and expenditures.
Al Saleh said the Dh2.5 billion deficit resulted from the reclassification of the budget and the 27 per cent increase in infrastructure expenditure.
According to the Media Office statement, the restructuring of the budget and the new classification of entities resulted in a decrease in projected revenue figures for the fiscal year 2017 compared to 2016. "However, comparing revenue items for 2017 with 2016 make it obvious that the government expects an increase in fees revenues by six per cent. This is due to the economic growth of the emirate and the growth achieved in sectors such as tourism and retail."
The statement noted that Dubai has managed to achieve financial sustainability by achieving an operating surplus of Dh2.9 billion. "This illustrates the breadth of the financial solvency of Dubai. It also highlights its ability to finance all operational expenditures and achieve a surplus without the need for oil revenues."
issacjohn@khaleejtimes.com

• Dubai