His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, may God protect him, in his capacity as Ruler of the Emirate of Dubai, approved Law No. (20) of 2023, regarding the general budget cycle of the Government of Dubai for the fiscal years 2024-2026, with a total expenditure of 246.6 One billion dirhams, as the budget cycle came to meet the ambitions of the future, and confirms Dubai’s determination to continue developing and stimulating the entrepreneurship and investment sectors, achieving well-being for society, meeting its requirements, and consolidating the emirate’s position as a land of opportunities and innovation.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai, said: “The 2024-2026 budget sets a financial road map to accelerate Dubai’s ambitions towards enhancing the growth of its vital sectors, and confirming its position as a global economic center. The new budget reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, in achieving a number of strategic goals for the next stage, most notably doubling Dubai’s gross domestic product and making it one of the three largest economic cities in the world. The world during the next ten years, while the budget reflects our commitment to achieving a balance between great ambitions, growth and economic stability, supported by rational financial policies.”
His Highness added: “The budget emphasizes support for key sectors that are vitally important to the future, and the transition to a new phase of knowledge-based growth, driven by innovation in the new digital world, while the budget enhances local entrepreneurship opportunities and creates a high-growth environment for all sectors. Moreover, the financial sustainability and competitiveness emphasized by the budget increases Dubai’s attractiveness to investors and businesses from around the world, so the approved budget provides an ideal starting point for Dubai to achieve its aspirations to build a prosperous tomorrow.”
His Highness said in a tweet on the “X” website: “His Highness Sheikh Mohammed bin Rashid Al Maktoum’s approval of the Dubai government’s general budget cycle for the years 2024-2026, with total expenditures of 246.6 billion dirhams, reflects His Highness’s vision within the Dubai Economic Agenda D33 to double Dubai’s domestic product. And to make it one of the three largest economic cities in the world, during the next decade, our goals are clear and we have a financial road map to accelerate Dubai’s future ambitions, and the citizen, his health, education, housing and well-being will remain the focus of the work of Dubai and its government.”
Stimulate the economy
Expenditures for the fiscal year 2024 are estimated at a total of 79.1 billion dirhams, a clear expression of the emirate’s determination to support development projects, stimulate the overall economy, and achieve the ambitious goals of the Dubai 2030 Plan and the Dubai Economic Agenda D33.
In the budget for the fiscal year 2024, Dubai continues to pay attention to social services, developing the health sector, education sector, culture, and infrastructure. The budget cycle (2024-2026) came to express Dubai’s vision for the future, by supporting space research, digitization, and artificial intelligence. It also focused on interest in entrepreneurship and creating a stimulating environment for the various sectors in the emirate.
Flexible plan
The Director-General of the Department of Finance, Abdul Rahman Saleh Al Saleh, stressed the importance of announcing a flexible and developable financial plan that would achieve the government’s financial sustainability and increase competitiveness and transparency, which would increase Dubai’s attractiveness for foreign investments.
He explained that “the budget for the fiscal year 2024, which was approved with total expenditures of 79.1 billion dirhams, came to meet the requirements of the Dubai Strategic Plan 2030, and the objectives of the Dubai Economic Agenda D33, and also works to achieve the vision of His Highness the Ruler of Dubai, and the directives of His Highness the Crown Prince of Dubai, by increasing support.” Government sectors for social development, housing citizens, developing government work, digitizing government, advancing scientific research, increasing institutional agility, and enhancing global competitiveness.
Al Saleh said, “The Dubai government is committed to working in accordance with the directives of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, on the necessity of adopting disciplined financial policies, which led to the establishment of a general reserve, which is deducted from revenues annually.” It is scheduled to reach about 20.6 billion dirhams, according to what is planned for the three years 2024-2026, in addition to what is decided by the Supreme Committee for Financial Policy in Dubai, headed by His Highness Sheikh Ahmed bin Saeed Al Maktoum, to reserve the surpluses achieved annually, which will achieve sustainability. Finance, and strengthens the financial position of the emirate in the face of any future crises.
He added: “The Department of Finance expects to achieve an operating surplus of up to 3.3% of the gross domestic product, during the work of the 2024-2026 financial plan, in order to establish the foundations of the emirate’s financial sustainability.”
Government revenues
The Director-General of the Department of Finance explained that “Dubai expects to achieve public revenues of 90.6 billion dirhams, of which 85.1 billion dirhams are allocated to the budget, and 5.5 billion dirhams to the general reserve,” stressing that the increase in revenues is due to the speed and efficiency of recovery procedures from the global pandemic, as well as dealing with… Professional and proactive with global events.
Government expenditures
Al Saleh pointed out that “announcing expenditures amounting to 79.1 billion dirhams in the budget for the fiscal year 2024 sends a clear 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, grants and government support expenditures constitute 23%, and general and administrative expenditures constitute 24% of total government expenditures.
Construction projects
The Dubai government allocated 8% of total government spending to construction projects, despite the completion of many strategic projects, the activation of the public-private partnership law, and the development of project financing mechanisms in the Dubai government, through long-term financing means, in a clear indicator of the sector. In particular, Dubai continues to develop its infrastructure and launch development projects.
The budget also included a special reserve of 8% of the total expected expenditures, in implementation of the principle of preparedness for emergency situations during the implementation of the financial plan in various sectors and activities. Dubai has maintained a debt service ratio of no more than 7% of its total expenditures, which does not constitute any obstacles to the emirate’s public finances, as a result of following a disciplined financial policy.
Sectoral distribution of expenditures
The budget for the fiscal year 2024 showed the extent of the government’s concern for people, as the budget allocated 34% of the total government spending to the social development sector in the areas of health, education, scientific research, housing, care for needy families, care for women and children, attention to youth and sports, and attention to the elderly, retirees, and people of determination.
The government gave great attention to the security, justice and safety sector, allocating 19% of total spending to support and develop it, and make it able to perform its role professionally and proactively, until it became one of the sectors that the emirate is proud of globally.
Spending on infrastructure, including roads, tunnels, bridges, means of transportation, sewage stations, gardens, parks, renewable energy plants, and waste treatment, recorded 42% of the government’s total spending. The emirate also paid attention to supporting the public services sector, government excellence, creativity, innovation, and scientific research, by allocating 5% of the total spending. Government development to develop performance and establish a culture of excellence, innovation and creativity.
Spending efficiency
For his part, the Executive Director of the Planning and Public Budget Sector in the Department of Finance, Arif Abdul Rahman Ahli, pointed out that “the Dubai government’s approach to medium-term financial planning and the announcement of a three-year financial plan come in implementation of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE.” Prime Minister and Ruler of Dubai, may God protect him, and the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.
Ahli said, “The budget for the fiscal year 2024 came in response to the requirements of the Dubai Strategic Plan 2030 and beyond, and a transparent expression of the emirate’s stable financial position, which is based on implementing disciplined financial policies, based on best practices in this regard, which contributes to achieving an operating surplus of 16%.” % of total government revenues, in order to achieve the desired financial sustainability of the emirate.”
He added: “The Department of Finance seeks to develop government spending efficiency programmes, by activating the unified purchasing and green procurement programme, and stimulating partnership with the private sector. It has also launched, as part of its efforts to develop the budget, the Program and Performance Budget Development Plan, which would link strategic planning with financial planning.” This confirms that the Dubai government is adopting the principles of leadership and transparency. Today, government agencies contribute to bringing the budget to global heights in terms of preparation, and achieving performance rates that are consistent with international best practices, through the government obtaining the highest scores in implementing budgets during previous years, according to the government performance index developed by the (Public Expenditure and Financial Accountability) program. ) Global”.
• Expectations to achieve revenues of 90.6 billion dirhams, of which 85.1 billion dirhams are allocated to the budget, and 5.5 billion dirhams to the general reserve.
• An expected operating surplus of about 3.3% of GDP during the 2024-2026 budget to establish the foundations of the emirate’s financial sustainability.
• The 2024 budget allocated 34% of government spending to the social development sector in health, education, scientific research, housing, care for needy families, women and children’s care, and attention to youth, sports, retirees, and people of determination.
• The Dubai government allocated 8% of total government spending to construction projects.
• Expenditures for the fiscal year 2024 amount to 79.1 billion dirhams, to support development projects and stimulate the overall economy.
Hamdan bin Mohammed:
• The citizen, his health, education, housing and well-being will remain the focus of the work of Dubai and its government.
• Our goals are clear, and we have a financial roadmap to accelerate Dubai’s future ambitions.
• The budget reflects Mohammed bin Rashid’s vision of doubling Dubai’s gross domestic product and making it one of the three largest economic cities in the world during the next ten years.
Enhancing transparency
The Executive Director of the Central Accounts Sector at the Department of Finance, Jamal Hamid Al Marri, confirmed the department’s efforts to consolidate development and innovation, through the development of collection programs, noting that smart collection through digital channels in 2022 increased by 22%, compared to the previous year.
Al Marri stressed that “the Dubai government is interested in publishing financial data and enhancing transparency,” noting that the financial data platform contributes to making financial data available to governments, institutions and individuals, which increases the emirate’s competitiveness.
He added: “The Department of Finance is constantly working to develop programs that will improve the public finance system and achieve financial excellence, such as applying international accounting standards for the public sector, which has made the Dubai government one of the first governments to implement these standards in the region, which will have the greatest impact in demonstrating… Results of budget implementation and developing ways of distinguished government performance.”
• 22% increase in smart collection via digital channels in 2022.
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