UAE to hike 2020 federal budget by 2%

The UAE has approved plans to hike its federal budget for 2020 by 2 per cent from the current year, it was announced on Sunday.

The general federal budget for 2019, at Dhs60.3bn, is the country’s largest ever. It marked an increase of around 17.3 per cent on the 2018 budget.

Following a meeting in Abu Dhabi on Sunday, the UAE’s Financial and Economic Committee reviewed cash flows, including income generated during the current financial year, as well as the projected revenue for the remainder of the fiscal year 2019, to update the financial statements of the federal authorities.

“The financial reports confirmed that the liquidity of cash flows is managed according to the disbursement plan of the general federal budget, and to meet the needs of all federal entities to finance their projects, and accomplish their programmes and strategic objectives,” official news agency WAM reported.

The budget for 2019 – planned with zero-deficit – included allocations of 42.3 per cent for community development, 17 per cent for education and 7.3 per cent to develop the healthcare sector.

It was part of a three-year budget of Dhs180bn ($49bn) announced by the UAE in September 2018.

Read: UAE Cabinet approves Dhs180bn three-year budget, 2019 spending surge

During the meeting on Sunday, the committee also reviewed the expected cash flows for the fiscal year 2020 and assessed the recently prepared draft general budget for the next year.

It also reviewed future projects of the federal government, which aim to raise the efficiency and effectiveness of government services, develop financial procedures and improve government performance in general, the WAM report stated.