DUBAI: Dubai’s government has planned to increase its spending for 2015 by 9% which will be $11.2 bn. However, This will be the first deficit-free-budget set up by Emirate, despite of the increase.
The budget, which was approved by Dubai’s ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, will provide 2,530 new job opportunities while continuing to stimulate economic growth, according to a statement issued through the Dubai Government’s Media office.
The government is forecasting an 11% increase in revenues for 2015, which will mainly be generated through money from government services. In 2014, total government revenues increased by 22%, which it said reflected overall growth inthe emirate. Tax revenues increased by 12% during the year, mainly due to customs charges and taxes on overseas banks.
Oil revenues, which only account for 4% of government revenues, were 5% lower than in 2014 as a result of the falling oil price.
Abdulrahman Saleh Al Saleh, director-general of Government of Dubai’s Department of Finance, said: “Dubai managed to move beyond the first budget deficit, but kept on increasing expenditure by 9% for fiscal year 2014, which pushes the principality’s macroeconomic growth to be in line with planned levels.
“The break-even point between government revenues and expenditures has come as a result of strict financial policies of the Supreme Fiscal Committee, chaired by HH Sheikh Ahmed bin Saeed Al Maktoum, which focused on increasing spending for the development of the sectors of the economy, infrastructure, communications, security, justice and safety, government services and excellence, and social development,” Al Saleh added.
The government said that 13% of its budget would be allocated towards supporting new infrastructure projects, adding that it is planning to maintain the current level of infrastructure spend over the next five years.
