UAE approves raising the size of 2020 budget by 2 per cent

The 2019 federal budget of Dh60.3 billion is currently the country's largest

Gross rental yields for Abu Dhabi apartments currently stand at 7.7% for apartments and 6.6% for villas. Mona Al Marzooqi / The National
Gross rental yields for Abu Dhabi apartments currently stand at 7.7% for apartments and 6.6% for villas. Mona Al Marzooqi / The National

The UAE has approved an increase in the size of 2020 federal budget, topping the largest-ever budgetary plan it had rolled out for 2019.

The Financial and Economic Committee of the UAE in its 40th meeting in Abu Dhabi, approved a rise of 2 per cent for the 2020 federal budget on top of the Dh60.3 billion the government had allocated for 2019, according to a government statement released late on Sunday evening.

The committee reviewed the expected cash flows for the fiscal year 2020, to update the financial statements of the federal entities. It also assessed the recently prepared draft general budget for next year. This was prepared by the Ministry of Finance after co-ordinating with relevant authorities.

“The Ministry of Finance continues its efforts to further build upon the federal financial system and improve the services to meet the expectations of all citizens, residents and government entities,” Obaid Al Tayer, Minister of State for Financial Affairs said. “This is in line with the ministry’s objectives to underscore its global leadership in public finance management and in line with the goals of the UAE Vision 2021, which aims to make the UAE one of the best countries in the world in terms of economic and social development by 2021.”

The Financial and Economic Committee also reviewed future federal government projects, which aim to raise the efficiency and effectiveness of government services. It also discussed the latest developments around the Etihad Rail project, funding for the second phase of which was agreed in November last year. Phase 2 will extend the existing 264-kilometre line by another 605km.

The Dh60.3bn federal budget set last year was part of a three-year, Dh180bn budget planned for 2019-21. The 2019 budget allocated 42.3 per cent of spending to community development programmes, while 17 per cent was set aside for upgrading education systems. The federal government also earmarked 7.3 per cent to the health sector in the 2019 plan.

The statement on Sunday did not give details of allocations for the 2020 budget.

The committee also reviewed cash flows for the current year, as well as projected revenue for the remainder of the current fiscal year. Financial reports confirmed that cash flows were being managed according to the disbursement plan of the current federal budget, the statement said.

Updated: September 30, 2019 08:49 AM

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