Sheikh Mohammed approves Dubai budget of Dhs181bn for 2022-2024
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Sheikh Mohammed approves Dubai budget of Dhs181bn for 2022-2024

Sheikh Mohammed approves Dubai budget of Dhs181bn for 2022-2024

It includes an expenditure of nearly Dhs60bn in 2022

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

The government of Dubai has approved a general budget for the fiscal cycle of 2022-2024, with a total expenditure of Dhs181bn.

The budget was approved Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Sunday.

Sheikh Mohammed also approved Law No. (28) for the General Budget for the fiscal year 2022, with Dhs59.95bn expenditure.

Abdulrahman Saleh Al Saleh, director general of the Department of Finance of the Government of Dubai (DoF) affirmed the Dubai government’s commitment to achieving an operating surplus of Dhs1.8bn, which represents 3 per cent of the expected total revenue.

Projected government revenues for 2022
The 2022 budget expects to achieve revenues estimated at Dhs57.55bn, an increase of 10 per cent over the expected revenues of the previous budget for the fiscal year 2021. As part of its economic stimulus measures, it has reduced some government fees for businesses and put a freeze on fee increases until 2023.

Its revenues are based on ongoing operations in the emirate and do not rely on oil revenues, according to news agency WAM. Oil revenues account for 6 per cent of the total projected revenues for the fiscal year 2022.

Non-tax revenues, which come from fees, account for 57 per cent of the total expected revenues, while tax revenues account for 31 per cent, and government investment revenues represent 6 per cent of the total expected revenues.

Projected government expenditure for 2022
Salary and wage allowances of the 2022 budget account for 34 pe rcent of total government spending, in accordance with the requirements of the new human resources law.

Grant and social support expenditure accounts for 21 per cent of all expenditure.

The government has allocated an amount of Dhs5.2bn 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 9 per cent of the total expenditure to maintain the volume of investments in infrastructure.

Around 2 per cent of the total expenditure is allocated to the private reserve to support emergency preparedness programmes, while public debt accounts for 6 per cent of the total expenditure.

Sectoral distribution of government expenditure
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 per cent of the total expenditure.

The government will spend 23 per cent of its total expenditure on security, justice and safety.

Dubai has also allocated 42 per cent of its total spending to the transportation sector.

Furthermore, it has allocated 5 per cent of the total government expenditure to support sectors of government excellence, creativity, innovation and scientific research.

Through its 2022 budget, Dubai has raised the value of housing loans for citizens to Dhs1m and allocated more than 4,000 plots and houses with a total value of Dhs5.2bn in the first phase of the housing programme for citizens in Dubai as part of a broader 20-year programme of Dhs65bn. The budget also focuses on developing the Social Benefits Fund by supporting families and people of determination.

“Dubai’s general budget for the fiscal cycle of 2022-2024, which reflects the fundamental strengths and stable base of the emirate’s economy, supports the realisation of its future economic aspirations, in addition to placing the emirate at the forefront of worldwide efforts to promote recovery,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai.

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 addresses key social aspects of healthcare and education, as well as digital infrastructure development and financial sustainability programmes.

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