His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dubai’s budget for 2013 focusing towards the social development, infrastructure, transport, and economic sectors as well as encouraging to support human resources.
Dubai Government announced budget will raise expenditure to Dh34.1 billion ($9.28bn), up by 6% from 2012. Public revenue will also rise by 7.8% to Dh32.6bn, according to a statement released by the Government of Dubai Media Office. As a result, the budget shows the positive growth sign of GDP.
The expenditure rise comes as the emirate’s economic fortunes have revived and strong performances in the emirate’s key sectors of trade, transport and tourism. Consequently, Emirate relies on various fees, taxes and customs duties for the majority of its budget revenues.
The distribution of expenditures by key sectors emphasises this government’s commitment to the individual, taking its queue from His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai’s direction: ‘people are the real wealth of the nation’.
Accordingly, private sector has greeted Dubai’s 2013 budget, saying this is the “fruitful new year’s gift” by the Dubai Government and sets the exact tone for the economy development in the New Year.
Government fees revenue will rise over the 2012 levels, increasing 9.8 percent and totaling 62% of overall government revenue, reflecting the forecasted growth rates and as a result of real economic growth. These fee revenue increase also in a reflection of the diversities and developments in government services and follow the policy implementation. Further, the Tax revenues are set to rise by 15% in 2013 and will represent 23% of overall government revenue. Net oil revenue increased by 11.8%, resulting from increased oil prices.
The government has encouraging services and expenditures, salaries and wages has been established at 39%, with phenomenal support to youth entrepreneurship has a major focus. Subsequently, general and administrative expenses represent 24%, reflecting the government’s commitment to further developing its institutions and its support to the provision of better government services to citizens and residents.
Furthermore, 11% of overall government spending is from grants and subsidies, which rose by 67 percent over last year’s figures. Charities, non-profits, sporting and housing subsidies were included in that total.
Approximately 35% of the budget was allocated for transportation, infrastructure and the economic segments, as Dubai continuing on the straightway to growth and successive progress its government continues to support for new projects.