Dubai has set the largest budget in its history for the 2020 financial year at 66.4bn dirhams ($18.1bn) in a bid to stimulate the economy and help support Expo 2020.
The budget, approved by prime minister of Dubai Sheikh Mohammed bin Rashid Al Maktoum, is up 17% on 2019’s budget of 56.8bn dirhams.
Almost half (46%) of the budget has been set aside for Dubai to develop its economy, infrastructure and transportation industries.
The government said the budget sent a “clear message to the business community, which will give great confidence to the emirate's economy and contribute to attracting more investments”.
The budget will also “serve the requirements of population growth and benefits arising from the hosting of Expo 2020 Dubai and the continuous development of infrastructure, as well as other goals of the Dubai Plan 2021”.
The Dubai Strategic Plan 2021 aims to build a smart, connected city with sustainable economic growth.
Salary and wage allowances account for 30% of total government spending, while grant and support expenditure account for 24%, to provide the health, education and social services to citizens and improve the level of public services.
Sheikh Mohammed approved a three-year budget cycle with a total expenditure of 196bn dirham ($53.4bn) for the 2020-2022 period.
Abdulrahman Saleh Al Saleh, director-general of Dubai's Department of Finance said the budget supported its endeavour to “confirm financial sustainability and work to stimulate entrepreneurship and business sectors in the emirate by enhancing business incentives for the next three years”.
“We are keen to provide economic incentives with an impact of attracting more investments, and work to improve the emirate's competitive position and implement the goals of the Strategic Plan 2021 and beyond,” Al Saleh continued.
“The budget for the fiscal year 2020 has been approved with total expenditure up by 16.9% compared to the previous year. 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 macroeconomy.”
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