Mohammad Bin Rashid approves Dh46.1 billion 2016 Dubai budget

Zero-deficit budget makes 37 per cent of allocation to social sectors

28 December 2015

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, on Sunday approved a Dh46.1 billion Dubai budget for 2016.

The zero-deficit budget has been increased by 12 per cent over the Dh41.17 billion of 2015.

The budget for the year has an operating surplus of Dh3.4 billion and targets the creation of 3,000 new jobs and provides the fiscal stimuli necessary to boost the economic growth of the emirate.

“Dubai managed to move beyond the budget deficit, but kept on increasing expenditure by 12 per cent for fiscal year 2015, which pushes the emirate’s macroeconomic growth to be in line with the planned levels,” said Abdul Rahman Saleh Al Saleh, Director General of Government of Dubai’s Department of Finance.

The 2016 budget’s main allocation is to the social sector, followed by infrastructure, security, justice and safety, respectively.

The expenditures on social development in the areas of health, education, housing and community development which also include grants, administrative expenses and capital expenditure, accounts for 45 per cent of government expenditure, while debt servicing gets 5 per cent of total allocation.

Revenue from government services represents 74 per cent of total government revenue. Tax revenues represent 19 per cent of total government revenues, which include customs and taxes of foreign banks. The oil revenues accounted for only 6 per cent of government revenue.