Emirate aims to stimulate economic growth through rise in public spending
Dubais ruler Sheikh Mohammed bin Rashid al-Maktoum has approved the emirates 2014 budget with the aim of continuing to stimulate economic growth and accentuating the social services sector, according to the official Emirates News Agency (Wam).
The government plans to increase the 2014 budget by 11 per cent compared with 2013, to support the emirates economy and contribute to the higher rates of economic growth through public spending, says Abdul Rahman Saleh al-Saleh, director-general of Dubais Department of Finance (DOF).
Dubai managed to reduce the gap in the budget of 2014 between public revenues of AED37bn ($10.1bn) and public expenditures of AED37.9bn by 41 per cent, compared to 2013, he adds.
With an operating surplus of AED2bn, the budget does not exceed 0.3 per cent of the emirates gross domestic product (GDP), Wam reported.
Wages represent 37 per cent of government expenditures and the government expects to create 1,650 new job opportunities for citizens in 2014, after creating 1,600 jobs in 2013.
Goods and services expenses and capital spending, grants and support represent 32 per cent of total government expenditure, while 17 per cent is allotted to the completion of infrastructure and development schemes in Dubai.
[To support Expo 2020, Dubai] has begun the preparation for the expansion of infrastructure projects through increased allocations within the budget of 2014 to AED6.4bn, and Dubai plans to maintain the size of its investments in infrastructure through the next five years, Wam reported.
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