The UAE government budgeting procedures have changed a lot. The federal budget grew from AED 200 million in 1972 to AED 58.3 billion in 2021. This big increase shows the UAE’s strong focus on growth and helping its people.
But what makes up the UAE’s federal budget? How does the government balance money coming in and going out? And how does it match with the country’s big goals?
Looking into the UAE government’s budgeting procedures can teach us a lot. It shows how the country manages its money and stays true to its financial promises.
Federal Budget Framework and Allocation Process
The UAE federal budget has a clear and open process. It matches the government’s big plans. The Ministry of Finance starts by sending out circulars to all federal groups. They explain how to plan and prepare the budget.
Then, each group makes their own budget. The Ministry of Finance checks these budgets carefully.
Understanding the UAE Federal Budget Structure
The budget structure helps manage money well. It covers how to make money, spend it, and follow fiscal policy. Important parts of the UAE federal budget include:
- Revenue sources: The UAE gets money from oil and other sources. They are working to get more money from non-oil sources.
- Expenditure categories: The budget gives money to different areas. This includes social development, government, education, and healthcare.
- Fiscal policy alignment: The budget fits with the UAE’s big plans for the economy and society. This helps everything work together.
Budget Cycle and Implementation Timeline
The UAE federal budget goes through a yearly cycle. It lasts for five years. Here are the main steps:
- Budget planning and preparation: The Ministry of Finance sends out circulars. Then, groups make their budgets.
- Budget review and approval: The Ministry of Finance checks the budgets. Then, the Cabinet and Federal National Council approve them.
- Budget execution and monitoring: The approved budget is put into action. Groups keep an eye on it to make sure it works well.
This detailed budget process helps the UAE government. It makes sure money is spent right, money is made, and plans are followed. This all helps the UAE reach its long-term goals.
Budgeting Procedures of the UAE Government
The UAE government uses Federal Decree-Law No. (26) of 2019 for budgeting. This law sets rules for managing money, including budgets and accounts. The budget planning covers 5 years, from 2022 to 2026.
Many groups help make the budget, like the Ministry of Finance and the Cabinet. They use a Medium-Term Financial Strategy and a Medium-Term Budget Framework. They also have a Consolidated Chart of Accounts.
The UAE’s budget revenues for 2024 were AED 65.728 billion. Expenditures were AED 64.060 billion. The General Budget Committee meets to check finances and growth.
The UAE also has laws for public finance, like taxation and procurement. These laws help make finance more open and efficient. They support the country’s economic development and small and medium enterprises.
| Key Budgeting Components | Description |
|---|---|
| Medium-Term Financial Strategy | Covers general economic prospects, resource policies, expenditure priorities, and financial risks. |
| Medium-Term Budget Framework | Projections of total revenues and expenditures for a period of at least 5 years. |
| Consolidated Chart of Accounts | Follows a classification adopted by the Cabinet for financial transactions. |
| Unified Treasury Account | An account that consolidates government funds and financial transactions. |
| Contingent Expenses and Guarantees | Procedures for managing unexpected expenses and government-backed obligations. |
The budgeting procedures in the UAE aim to ensure transparent, efficient, and responsible public expenditure. They support the country’s economic growth and development priorities.
Conclusion
The UAE’s budgeting is smart and forward-thinking. It balances social and economic growth well. This shows the UAE’s strong commitment to growth and helping its people.
The UAE uses a long-term budget plan. It also has strong checks and balances. This keeps finances in line and helps achieve big goals.
The UAE is a leader in budgeting in the Gulf and worldwide. It has made new rules for buying things. This makes buying more open and fair, meeting high standards.
The UAE cares about the environment and fair work. It checks suppliers well. This shows it manages money in a big picture way.
The UAE uses new tech to make buying things better. This makes things more efficient and saves money. It’s a good example for other countries to follow.
