The UAE Cabinet has approved a Dh248 billion federal budget for the next five years, with a prime focus on education, social development and health, as the country bucks the regional purse-tightening trend.
The budget for next year was set at Dh48.7bn, a slight increase from this year’s Dh48.57bn, which also focused on social development, education and health.
The lion’s share of the 2017 budget, around Dh25.2bn, is dedicated to sectors affecting the lives of UAE citizens.
About 20.5 per cent of the 2017 budget, or Dh10.2bn, has been earmarked to the education sector, 8.6 per cent or Dh4.2bn to the healthcare sector, 8.2 per cent or Dh4bn to public sector wages, 6.6 per cent or Dh3.2bn to social development and 3.3 per cent or Dh1.6bn to housing.
“Utilising the financial resources to achieve the highest degree of prosperity and welfare of the citizens and residents is a priority, underlining education, health and community welfare as key pillars for the development of the society,” said Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
At today's Cabinet meeting at the Presidential Palace in Abu Dhabi, we approved the Dhs 248 billion Federal budget for the next five years.
pic.twitter.com/SX4CJGj9TMThe Cabinet also set aside Dh3.3bn for federal projects in the 2017 budget. These include: Dh891 million for federal government projects, Dh771m for developing the power and water sector through projects undertaken by the Federal Electricity and Water Authority and Dh1.4bn for the Sheikh Zayed housing programme.
In addition, Dh2bn has been earmarked to support government innovation through the establishment of the Mohammed bin Rashid Innovation fund to help inventors, in line with the targets of Vision 2021.
The federal government of the UAE is maintaining spending over the next five years despite a drop in oil prices, which has eaten away into its biggest source of revenue.
The UAE swung to a deficit of 2.1 per cent of GDP last year as oil prices plunged by more than half their value in 2014.
The country is forecast to post a 3.9 per cent deficit this year, and a 1.9 per cent deficit next year, according to IMF estimates. The IMF is projecting that the UAE’s cumulative fiscal deficit will reach US$18.4bn between this year and 2021 as low oil prices reduce government income.
To help nudge growth higher this year, the IMF has urged the UAE to ease the pace of spending cuts and instead use its ample financial reserves to balance the budget. The fund’s growth forecast for the UAE is 2.3 per cent for this year, down from the 4 per cent growth of last year.
Because of the oil price plunge, the UAE has embarked on a number of cost-reducing initiatives, including a reduction in energy subsidies and other public spending cuts.
dalsaadi@thenational.ae
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England v New Zealand
(Saturday, 12pm UAE)
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Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
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The bio
Academics: Phd in strategic management in University of Wales
Number one caps: His best-seller caps are in shades of grey, blue, black and yellow
Reading: Is immersed in books on colours to understand more about the usage of different shades
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Holiday: Favourite travel destinations are London and St Tropez
How much of your income do you need to save?
The more you save, the sooner you can retire. Tuan Phan, a board member of SimplyFI.com, says if you save just 5 per cent of your salary, you can expect to work for another 66 years before you are able to retire without too large a drop in income.
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Obviously, this is only a rough guide. How much you save will depend on variables, not least your salary and how much you already have in your pension pot. But it shows what you need to do to achieve financial independence.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Rafael Nadal's record at the MWTC
2009 Finalist
2010 Champion
Jan 2011 Champion
Dec 2011 Semi-finalist
Dec 2012 Did not play
Dec 2013 Semi-finalist
2015 Semi-finalist
Jan 2016 Champion
Dec 2016 Champion
2017 Did not play
Copa del Rey
Semi-final, first leg
Barcelona 1 (Malcom 57')
Real Madrid (Vazquez 6')
Second leg, February 27
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Martin Sabbagh profile
Job: CEO JCDecaux Middle East
In the role: Since January 2015
Lives: In the UAE
Background: M&A, investment banking
Studied: Corporate finance
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The%20specs
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The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy
MATCH INFO
Uefa Champions League quarter-final second leg:
Juventus 1 Ajax 2
Ajax advance 3-2 on aggregate
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Have you been targeted?
Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:
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Scores in brief:
Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
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