Budget 2021 reflects Dubai’s financial stability

Inayat-ur-Rahman, Deputy Business Editor

The Dubai’s general budget for fiscal year 2021 reflects the emirates financial stability through it s implementation of economic policies.

Mattar Mohammed Al Tayer, Director-General, Chairman of the Board of Executive Directors of the Roads and Transport Authority, confirmed that budget 2021 would enhance the competitiveness of Dubai and the construction of vital infrastructure projects aimed at delivering top-class services and bringing happiness to citizens, residents and visitors alike.

“The budget will bolster the economic growth and the improvement of services towards coping with COVID-19 crisis as well as supporting the social grants and subsidies and the delivery of basic services.

“It warrants the adoption of more expedient policies in striking a balance between growth, economic stability and financial sustainability over the medium and long runs. It also requires continued efforts towards augmenting revenues, and increasing the efficiency of expenditure besides promoting the scale of engaging the private sector,” said Al Tayer.

“The Dubai Government 2021 Budget serves the needs of demographic growth, requirements of hosting Expo 2020, and the sustained improvement of the infrastructure. It also supports the partnership with the private sector towards realising all the objectives of Dubai Plan 2021 in a way that contributes to improving the standard of living and the welfare of citizens and residents of the Emirate,” he noted.

“The allocation of 41% of the government expenditure to supporting the infrastructure and transportation sector in the Emirate underscores the attention of our leaders to continue leveraging the infrastructure and transportation. RTA will direct the allocations made to boost the strategic roads and transport projects and complete a host of vital projects in the Emirate such as Al Shindagha Corridor (including the Infinity Bridge), and the improvement Dubai-Al Ain Road and Rashid bin Saeed-Ras Al Khor Corridor,” concluded Al Tayer

The fiscal year 2021 budget announcement sends a clear message to the business community that Dubai is pursuing an expansionary fiscal policy, which contributes to strengthening confidence in the emirate’s economy and attracting more direct investments. The budget serves the requirements of population growth and the benefits resulting from hosting Expo 2020 and the continuous development of the infrastructure. It also supports the goals of the Dubai Plan 2021. The government seeks to expand the outsourcing of services to the private sector to enhance its engagement in economic development, which will contribute to improving the wellbeing and happiness of citizens and residents.

Salary and wage allowances of the 2021 budget account for 35 per cent of total government spending, in accordance with the requirements of the new human resources law, to ensure family and community stability. Grant and support expenditure account for 26 per cent in order to meet the requirements of human and community development and provide public services to the residents of the emirate.

The government has approved 9 per cent of the total expenditure to maintain the volume of investments in infrastructure, in line with Dubai’s aspirations to be the world’s most preferred destination to live in. This comes alongside the completion of some projects, the activation of the public-private partnership law and the development of project financing mechanisms in Dubai government through long-term financing.

The Dubai government has allocated one per cent of the total expenditure to the private reserve, in accordance with the principal of preparing for the impact of the crisis. It also allocated six per cent of the total expenditure to serve the public debt, in order to follow a disciplined fiscal policy that ensures the budget fulfills all obligations.

The budget of the fiscal year 2021 reflects the government’s commitment to the people, who are the real wealth of the nation, as indicated by His Highness Sheikh Mohammed Bin Rashid Al Maktoum. The approach taken by the emirate to combat the COVID-19 pandemic reflects the government’s keenness to ensure the health and safety of the community. Dubai and the UAE became among the first countries to receive the COVID-19 vaccines.

Government spending in the social development sector in areas of health, education, housing, women and children’s care, as well as developing reading and coding initiatives, represents 31 per cent of total expenditure.