DUBAI, H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, has issued Financial Circular No. 03 of 2020 regarding the commencements of drafting the UAE's Federal Budget for the fiscal year 2021.
The circular was issued as part of the Ministry of Finance's objectives to bolster the government's financial planning, budget implementation, increase efficiency, as well as to manage finances and cash flows.
According to a statement issued by the Ministry, the circular sets 19th April 2020 as the submission deadline of the 2021 draft budgets.
Sheikh Hamdan said, "The MoF is preparing the draft budget, in accordance with international best practices, and in a manner that optimises the use of government financial resources. This ensures the improvement of government services, including the provision of high-quality education, health and social services to achieve prosperity."
He noted that the Ministry website lists all the information required to help guide federal government entities while preparing their draft budgets.
His Highness affirmed the ministry’s commitment to the government strategy, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to develop the federal government administration, follow rational financial policies, increase sources of income and ensure customer satisfaction.
He said, "By adopting the best principles of effective financial management, and designing and implementing rational financial policies, the MoF makes every effort to achieve the highest returns on financial resources, as well as to provide transparent reports that optimise federal government resources."
The 2020 fiscal budget reinforces the success of the ministry’s operations, and is estimated at a total of AED61.35 billion, against estimated expenditures around the same value without deficit for the third year in a row.
Community development and pension programmes accounted for 38 percent of the total budget, to cater to the wellbeing of and provide a decent life for the UAE society. A further 14.8 percent was allocated towards upgrading the education system.
The health sector accounted for 6.9 percent of the total budget, while 2.5 percent of the total budget was allocated to the Sheikh Zayed Housing Programme. Allocations for government affairs amounted to 32.6 percent and are based on managing national facilities and providing the highest level of government services to society.
Experts at the MoF continue to provide training on the procedures of updating the budget project to all federal entities that seek assistance.
The MoF developed a system to implement promotions (financial and employment), as well as amendments to the job budget during the budget execution year, to enhance the efficiency of preparing the general budget and to facilitate procedures related to the job budget. An intermediary account was created for amendments to the job budget, which the ministry also explained to the federal authority users of the budget automated system during the workshops held in February 2020.
Several workshops to train specialists to prepare the draft budget were held with the federal authorities at the beginning of March 2020.
Source: Emirates News Agency