His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Monday, approved the Government of Dubai’s general budget for the fiscal cycle of 2024-2026, with total expenditures of Dh246.6 billion.
According to Khaleej Times, Sheikh Mohammed also approved Law No. (20) of 2023 regarding the General Budget of the Dubai Government for the Fiscal Year 2024, with expenditures estimated at Dh79.1 billion, which reflects the emirate’s economic recovery and boosts its ambitions to stimulate the macro-economy and support the objectives of the Dubai Strategic Plan 2030 development project as well as the Dubai Economic Agenda “D33”.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, said: “The 2024-2026 budget charts a financial roadmap for accelerating our ambitions to foster exponential economic growth and consolidate Dubai’s position as a global economic powerhouse.”
Abdulrahman Saleh Al Saleh, Director General of the Department of Finance (DOF) for the Government of Dubai, said: “The announced budget cycle represents a flexible and developable financial plan that will achieve financial sustainability for the government and increase competitiveness and transparency, which in turn will advance Dubai’s attractiveness for foreign investments.”
Projected revenues in 2024
As a result of the emirate’s rapid and efficient recovery procedures from the consequences of the global pandemic, the Dubai government expects to achieve estimated public revenues of Dh90.6 billion, of which Dh85.1 billion have been allocated to the budget, and Dh5.5 billion to the general reserve.
Projected expenditures in 2024
Al Saleh said: “The announcement of expenditures amounting to Dh79.1 billion in the 2024 fiscal year budget sends a positive message to the business community that Dubai is pursuing an expansionary financial policy, which adds great confidence to the emirate’s economy and contributes to attracting more direct investments.
Salaries and wages constitute 26% of total government expenditures, and grants and government support expenditures constitute 23%, while 24% of total expenditures have been allocated to general and administrative expenditures.
Despite the completion of many strategic projects, the activation of the public-private partnership law, and the development of project financing through long-term financing means the government has allocated 8% of total expenditures to construction projects. This sends a strong signal to the private sector about Dubai’s determination to continue developing its infrastructure and delivering more strategic development projects.
Dubai is also keen to hedge against any situation that may result from global crises by allocating a special reserve of eight per cent of the total expected expenditures in the budget. Dubai has also maintained a debt service ratio that does not exceed seven per cent of its total expenditures, as part of its disciplined financial policy.
Sectoral distribution of expenditures in 2024
A total of 34% of total government expenditures of the 2024 budget goes to the social development sector in the areas of health, education, scientific research, housing, caring for needy families and for women and children, preparing youth, developing sports, and caring for senior citizens and retirees, as well as caring for people of determination.
Dubai government has allocated 19% of total expenditures to the security, justice and safety sector, to further develop it and enhance its ability to perform professionally and proactively, until it has become one of the sectors that the emirate boasts on the global stage.
Spending on infrastructure, including roads, tunnels, bridges, transportation, sewage stations, parks, renewable energy sources and waste treatment facilities, has accounted for 42% of total spending. The emirate’s government has also placed high emphasis on supporting the public services sector, government excellence, creativity, innovation and scientific research by allocating five per cent of total government spending to develop performance and foster a culture of excellence, innovation and creativity. (NewsWire)