Dubai sets biggest ever budget for 2020
The 2020 budget has been approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. Additionally, a Dh196 billion three-year budget has received approval (2020-2022).
The increased budget is attributed to the nationwide focus on the Dubai Plan 2021 and Expo 2020 Dubai. Also, this expenditure plan covers social services (health, education, housing), works on supporting families and developing the Social Benefits Fund, all to achieve a common goal – so Dubai is ranked among the most ‘liveable cities in the world’.
The enormous budget is no cause of concern because the well-strategized budget accounts for an operating surplus of Dh1.96 billion, owing to the city’s disciplined financial policies. The government predicts an increase in public revenues by 25 per cent, expecting it to reach Dh64 billion in the coming year. This predicted increase comes in the wake of economic governmental measures to reduce fees or increase the freeze on fees for three years, and to avoid imposing new fees in the absence of a new service.
The revenues are categorised as oil revenues (6% of total revenues), non-tax revenues (60% of total revenues), tax revenues (29% of total revenues) and government investment revenues (5% of total revenues).
The expenditure plan is categorised as salary and wage allowances, grant and support, infrastructure, social development, security, justice and safety and economy and transportation. With an aim to make sure the Expo 2020 Dubai goes down in history as the best ever Expo, while simultaneously preparing for any unseen risks, the Dubai government has announced a first of its kind special reserve that will hold three per cent of total expected expenditures. Additionally, Dubai will also be well-equipped with a debt service rate of no more than five per cent. Dubai is well on its way to a prosperous and exciting future.