Government’s revenues amount to Dhs115.6b in first quarter: MoF

The preliminary results of the UAE Government Finance Statistics Report for the first quarter of 2023, published by the Ministry of Finance (MoF) on Tuesday, revealed that the government’s revenues amounted to Dhs115.6 billion, and its expenditures totaled Dhs92.5 billion.

Total revenues included Dhs63.5 billion of tax revenues, Dhs3.9 billion of revenues from social contributions, and Dhs48.2 billion of other revenues from property income, sales of goods and services, fines and penalties, and transfers not elsewhere classified.

According to the Ministry of Finance’s data, the value of total expenditures amounted Dhs92.5 billion consisting of net investment in nonfinancial assets and current expenses, including employees’ wages, use of goods and services, consumption of fixed capital, paid interest, subsidies, grants, social benefits, and other transfers.The results of financial transactions during the first quarter of 2023 shows the value of net lending/net borrowing amounted to Dhs23.2 billion. The net lending/net borrowing value is a summary measure of a governments’ ability to lend or their need to borrow, and an indicator of the financial impact of government activity on other sectors of the economy.

Younis Haji Al Khouri, Undersecretary of Ministry of Finance, said: “These results reflect the efficiency of government expenditure and effective utilisation of financial resources in directing them to priority strategic sectors. It also showcases the advancement of the government’s financial framework and its success in developing new and diversified sources of government revenue away from oil, and adopting effective financial policies to manage and develop the government’s financial resources.”

He added: “The government’s financial performance enhances the UAE’s competitiveness and its move towards sustainable socio-economic development. The World Bank projects that the UAE’s non-oil sector is expected to achieve strong growth by the end of 2023, driven by robust domestic demand, particularly in tourism, real estate, construction, transportation, and manufacturing sectors.”

Publishing the preliminary results of the UAE Government Finance Statistics Report for the first quarter of 2023 is in line with the open data policy followed by the United Arab Emirates and based on the standards of the Government Finance Statistics Manual issued by the International Monetary Fund. Government Finance Statistics (GFS) shows the total volume of government operations in the country and measures the financial activities of the government in an economy, and the government’s allocation of resources.

These statistics are an essential element in sound financial analysis, monitoring public expenditures, and play a pivotal role in setting financial programmes and monitoring economic policies. It is a key type of macroeconomic statistics that serves political leaders, decision-makers, researchers, and those interested in the financial sector, making it one of the statistics of high local and international interest. Therefore, the open data portal in the Ministry of Finance allows access to data that can be used by developers, researchers, the media, and the public, in line with the concept of open government data and the era of digital transformation.

The Ministry of Finance recently announced its annual report for the year 2022, titled “Remarkable Achievements Shaping Promising Financial Prospects.”

The report highlights the MoF’s performance in initiatives, national projects and international participation. It includes the MoF’s most prominent achievements, leadership councils and committees, and strategic objectives.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, stated that the Ministry of Finance, since the establishment of the Union, has been keen on becoming a pioneering model and global reference for best practices and international standards in government financial work. It also continuously works to achieve excellence and leadership in all areas of its work by adopting an innovative approach to developing and implementing its policies and goals towards achieving sustainable financial and economic growth.

He emphasised that the Ministry of Finance harnesses all capabilities to support the UAE’s competitiveness, aligning with government visions and directions. It has established a great financial system that helps manage and diversify financial resources, supporting sustainable economic and social development.

Al Hussaini added that the Ministry of Finance will continue to work to achieve our objectives and aspirations and add further achievements and successes to our track record. We will continue to contribute to strengthening the country’s march towards the future and achieving the ‘UAE Centennial Plan 2071’ goals, which aim to make the UAE the best country in the world by 2071.

The Ministry of Finance achieved all its strategic goals during the strategic cycle (2017-2022), through launching and implementing cutting-edge and proactive projects, plans and initiatives at the level of UAE’s public and private sectors.