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Dubai to post $680.7m deficit in 2017 as infrastructure spending ramps up

Dubai to post $680.7m deficit in 2017 as infrastructure spending ramps up

The new budget will see a 2.6 per cent increase in spending

Dubai is expected to post a Dhs2.5bn ($680.7m) deficit representing 0.6 per cent of GDP next year as it ramps up infrastructure spending.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai approved the Dhs47.3bn budget for 2017 on Wednesday.

It includes a 27 per cent increase in infrastructure spending, to 17 per cent of total spending as the country ramps up its efforts for the 2020 World Expo.

Total spending is expected to increase 2.6 per cent, or Dhs1.2bn compared to Dhs46.1bn in 2016.

Total revenue next year is expected to decline but government revenue from fees is projected to increase 6 per cent due to economic growth and the growth of sectors including tourism and retail.

Government fees represent 76 per cent of revenue, with 16 per cent from tax and customs and just 6 per cent from oil.

Among the goals of the 2017 budget are to create more than 3,500 new jobs.

The allocation of salaries and wages represents 33 per cent of total expenditure, while general, administrative, grants and support expenditure represents 47 per cent.

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