About 1,600 jobs for Emiratis will be created under Dubai's budget for 2013, approved yesterday by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.
The expansionary budget will raise spending to Dh34.1 billion (US$9.28bn), up by 6 per cent from 2012. Public revenue will also rise by 7.8 per cent to Dh32.6bn, according to a statement released yesterday by the Government of Dubai Media Office. As a result, the budget deficit would fall to below 0.5 per cent of GDP, it said.
The budget focuses on a "prudent fiscal policy that provides the stimuli necessary to economic growth in the emirate, raise the efficiency of government agencies to provide the best services, health and social care for the citizens and residents," the statement said.
The spending rise comes as the emirate's economic fortunes have revived after being rocked by a debt crisis in 2010. Strong performance in the emirate's key sectors of trade, transport and tourism have spearheaded a recovery.
The emirate relies on various fees, taxes and customs duties for the majority of its budget revenues.
About 6 per cent of public spending would be allocated to debt servicing, with 26 per cent of the budget earmarked for health, education, housing and social development. Salaries would account for 39 per cent of government spending and 1,600 new jobs would be created for Emiratis.
Most of UAE government expenditure is done by the individual emirates, with Dubai accounting for about 10 per cent of the total.
In October, Sheikh Mohammed approved plans to spend Dh44.6bn in 2013 as part of a UAE federal budget.