Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid has announced a three-year fiscal plan for UAE. This is for the first time such a decision is being made. In the Government’s budget for 2020-22, total expenditures would reach Dh196 billion (US$53 billion) until 2022. This is an attempt to boost the overall economy of the emirates, with Dh66.4bn earmarked for spending. It is the highest amount the emirate has ever budgeted for, The National reports.
According to the Dubai Media Office, the focus will be on sectors including social services, health, education, and housing. Department of Finance Director General Abdulrahman Al Saleh has said this comes as part of “supporting the Dubai Plan 2021 and the Expo 2020 Dubai, as well as moving forward in support of the emirate’s macro economy”.
The Dh66.4bn expenditure for the next fiscal year is higher than Dh56.8bn allocated in 2019, which had a specific allocation of Dh9.2bn for Dubai Expo 2020 infrastructure projects.
Spending on construction projects will account for 12 per cent of government expenditure and includes sums for the continued development of Expo 2020 infrastructure, which will remain in place to serve the emirate’s broader economy once the event is over.
The government is also setting aside Dh8bn to develop more infrastructure projects in Dubai and prepare for future commitments as it plans to implement its 2015 Public-Private Partnership law and devise project financing mechanisms for long-term projects.
According to The National, the Government has allocated 12% of the total spending for construction and infrastructure development, with Dh8 billion set aside to develop more infrastructure projects in Dubai and prepare for future commitments as it plans to implement its 2015 Public-Private Partnership law and devise project financing mechanisms for long-term projects.