Mohammed bin Rashid Approves Dubai Government's 2021 General Budget
In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved the Government of Dubai's general budget for the fiscal year 2021, with total expenditures of AED57.1 billion.
The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the COVID-19 pandemic on the global economy.
It also confirms Dubai’s ability to deal with the crisis, restore the pace of economic growth, strengthen social benefits and essential services and adopt policies that achieve growth, economic stability and financial sustainability in the medium and long term.
The 2021 budget also demonstrates continued efforts to develop revenues, raise the spending efficiency and increase the level of private sector engagement.
Dubai's new budget will continue to support social, health, educational and cultural services as well as investments in infrastructure services in the emirate, as part of the objective of making Dubai one of the world’s best cities to live in.
Dubai's keenness to develop its infrastructure and transportation has led to an allocation of 41% of total spending to the sector. This reflects its commitment to dealing with future commitments, supporting entrepreneurship and creating an incubator environment for enterprises.
His Excellency Abdulrahman Saleh Al Saleh, Director General of the Department of Finance of the Government of Dubai (DOF), said: "Economic incentives issued under the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, to support the business sector in the emirate, have contributed to achieving institutional agility through structuring the government to achieve financial sustainability."
Arif Abdulrahman Ahli, Executive Director, Planning and General Budget Sector at DOF said: "Initial estimates for 2021 suggest that GDP will see four per cent growth, supported by continued recovery of economic activities.
“The 2021 budget comes in response to the requirements for recovery and dealing with the postponement of Expo 2020 Dubai. It also reflects the emirate’s financial stability through its implementation of financial policies as per best global practices."
Projected government revenues for 2021 are AED52.314 billion.
These revenues are based on ongoing operations in the emirate and do not rely on oil revenues. Oil revenues account for 4% of the total projected revenues for the fiscal year 2021.
Non-tax revenues, which come from fees, account for 59% of the total expected revenues, while tax revenues account for 31%, and government investment revenues represent 6 per cent of the total expected revenues.
Jamal Hamed Al Marri, Executive Director of the Central Accounts Sector at DOF, said: "DOF continues to promote the digital transformation in Dubai government through new programmes prepared, launched and implemented with the relevant government entities, including Al Khazna, ALMAS, Bawabatech and Bayan, among others.”