Dubai to raise spending 9% in 2015 to keep the economy growing while eliminating its budget deficit for the first time since the 2008 global financial crisis.
H.H. Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved a AED 41 billion ($11.1 billion) budget for Dubai, up from AED 37.88 billion in the original budget for 2014.
Revenues are expected to jump 11% in 2015 compared to 2014, reducing the budget deficit to zero from AED 882 million last year.
Abdulrahman Saleh Al Saleh, director general of Government of Dubai’s Department of Finance, said spending increases were included for infrastructure, communications, security, justice and safety, government services and excellence, and social development.
Revenues from government services, which represents 74% of total government revenues, are set to increase by 22% compared to 2014. Oil revenues are set to account for only 4% of government revenues as economic diversification continues. Tax revenues increased by 12% of the total government revenues compared to fiscal year 2014, and came to represent 21% of total government revenues, which include customs and taxes of foreign banks.
Dubai is planning to maintain the size of its investments the economy, infrastructure and transportation, which command 35.7% of the budget, while support for social development in the areas of health, education, housing and community development will remain a priority, with 34.9% of allocations. The budget of 2015 also stresses support for security, justice and safety, with 21.8% of government spending allocations.
“The government’s success in achieving no-deficit balance is a result of applying prudent fiscal policies,” said Arif Abdulrahman Ahli, executive director of budget and planning in the Department of Finance.
