Education, health, social services and infrastructure may receive a spending boost under a draft federal budget for next year. Extending highways, building schools, hospitals, health centres, security facilities, universities and courts were the focus of a draft budget put forward by the Ministry of Finance yesterday. The ministry did not reveal the total spending outlined in the proposed budget. It also did not disclose the oil price threshold above which the UAE would avoid a budget deficit.
"This draft budget is a reflection of the economic and social options evaluated by the Ministry of Finance with an aim to maximise the state's capabilities to achieve speedy, just and sustainable development," said Obaid Humaid al Tayer, the Minister of State for Financial Affairs. "It also focuses on strengthening its abilities to leverage resources effectively and efficiently at the federal level while focusing on sustainable economic growth."
The draft budget included proposals for the upcoming financial year from federal authorities and ministries after the Ministry of Finance in April asked them to prepare their own proposed budgets without exceeding this year's budgets. Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has to approve the budget after it is reviewed by the Ministerial Committee for Finance and Economic Matters.
Last year, the Government said it raised state expenditure by 21 per cent to Dh42.2 billion (US$11.49bn) in a balanced budget. The UAE releases budgets every year and uses an incremental budgeting process. In a move seen by analysts as helping the country to prioritise spending, the Government plans to change the way it develops its federal budget. From 2011 it will release three-year budgets, the Ministry of Finance said in April.
tarnold@thenational.ae
