Abu Dhabi, UAESaturday 21 September 2019

UAE’s ministry of finance works on 2020 budget draft using electronic systems

Deadline for submitting draft budgets of federal entities to the ministry is March 22

Cash refunds for tourists reclaiming VAT have been set to a Dh7,000 limit. Silvia Razgova / The National
Cash refunds for tourists reclaiming VAT have been set to a Dh7,000 limit. Silvia Razgova / The National

The UAE’s ministry of financing is working with federal entities to draft the 2020 fiscal budget using electronic systems in order to increase efficiency in the process and comply with international best practices.

The deadline for the submission of draft budgets of federal entities to the Ministry of Finance is March 22, according to a circular.

“The Ministry of Finance continues to work with all relevant parties to prepare the draft budget for the fiscal year 2020 in adherence with international best practices and using the latest electronic systems,” Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, said in a statement on Tuesday. “This will increase the efficiency of public spending, which in turn enables federal entities to achieve their goals and objectives in an optimal manner, and prepare a development budget that encourages investment spending.”

The UAE Cabinet approved last year the largest federal budget in the country’s history, with more than half allocated for education and social development in 2019.

Fiscal year 2019 will have a balanced budget of Dh60.3 billion, an increase of 17.3 per cent from last year’s Dh51.4bn budget, which also prioritised community development and education. A budget of Dh180bn for 2019-2021 was also approved.

Social development programmes are the foremost priority and will receive Dh25.5bn, or 42.3 per cent of the 2019 budget, slightly less than the 43.5 per cent share allocated this year.

Education will receive Dh10.25bn, 17 per cent, and the healthcare sector will receive Dh4.40bn, or 7.3 per cent, unchanged from this year.

“The experts at Ministry of Finance continue to provide training on the steps and procedures of updating the budget project to all federal entities that seek assistance,” said Obaid Al Tayer, Minister of State for Financial Affairs. “The ministry held an open meeting on the modernisation of the draft budget for 2020 with all federal entities in February 2019, while workshops will soon be held to train specialists in the preparation of the draft budget with the federal authorities in March 2019.

Updated: March 5, 2019 05:33 PM

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