The cabinet approved on 10 May the draft federal budget for 2004, which provides for a 2.6 per cent increase in expenditure to AED 23,880 million ($6,507 million). Revenues are forecast to rise by 3.1 per cent to AED 21,720 million ($5,918 million), leaving a projected budget deficit of AED 2,160 million ($589 million), a slight improvement on the budgeted deficit of AED 2,209 million ($602 million) in 2003. The bulk of 2004 expenditure has been earmarked for the security and justice sector, which accounts for 42.2 per cent of total allocations, with the social service sector accounting for a further 37.9 per cent. The budget, which is effective from 1 January, will now be passed to President Sheikh Zayed bin Sultan al-Nahyan for approval.