Dubai this week unveiled a Dh56.6 ($15.4 billion) billion budget for 2018, with a primary focus on infrastructure projects led by Expo 2020.
The budget for 2018, the largest-ever in Dubai's history with a 19.5 per cent year-on-year increase in overall spending, expects 12 per cent rise in public revenues at Dh50.4 billion. Non-tax revenues (fees) represent 71 per cent of the budget and tax revenues contribute 21 per cent, in addition to 6 per cent by oil and 2 per cent by government investments.
"Over the coming years, the Dubai government actively seeks to improve public budget performance continuously, in order to achieve financial sustainability, fulfil the emirate's commitments, and realise the strategic objectives of Dubai 2021 Plan," said Abdulrahman Saleh Al Saleh, Director-General, Dubai Government's Department of Finance.
The budget for the fiscal 2018 comes in line with Dubai's future commitments, notably Expo 2020. The budget features a rise in infrastructure spending, which makes up 21 per cent of the total government expenditure. This reflects the directives of Sheikh Mohammed to raise infrastructure efficiency in Dubai in order for the emirate to become the preferred destination for living, tourism, and businesses across all sectors.
"Expo 2020 presents challenges that require us to focus on availing construction expenses needed for the mega infrastructure projects related to Expo 2020. Such projects will only benefit the success of the huge international Expo upon launching in three years, but is also expected to serve the emirate for decades to come, especially in light of Dubai's noticeable urban expansion towards the Expo project area," Al Saleh said.
"Dubai's commitment to Expo 2020 has led to approving a budget with a Dh6.2 billion deficit, representing 1.55 per cent of the total GDP in Dubai. This is the result of a 46.5 per cent rise in the infrastructural spending over the fiscal year 2017, and including over Dh5 billion dedicated to Expo projects," he added.
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The budget's overall spending saw a 19.5 per cent increase over 2017. The increase was due to the focus on meeting the needs of Expo 2020, whose investment value is estimated at Dh25 billion, as well as the expansion of the Dubai Metro's Route 2020, estimated at around Dh10.6 billion. In this context, the Department of Finance has reached the final stage of the Dh5.5 billion financing agreement based on the export credit guarantee system.
The budget is expected to offer more than 3,100 jobs, with salaries and wages amounting to 30 per cent of the total government spending in 2018.
By Muzaffar Rizfi
Editor's note: The article has been adapted from its original source.
