Sheikh Mohammed Bin Rashid Al Maktoum.

Inayat-ur-Rahman, Business Deputy Editor / WAM

In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has approved the Government of Dubai's general budget on Sunday for the fiscal year 2021, with total expenditures of Dhs57.1 billion.

The newly-announced budget takes into account the exceptional economic conditions of the fiscal year 2020 and the repercussions of the COVID-19 pandemic on the global economy. It also confirms Dubai’s ability to deal with the crisis, restore the pace of economic growth, strengthen social benefits and essential services and adopt policies that achieve growth, economic stability and financial sustainability in the medium and long term.

The 2021 budget also demonstrates continued efforts to develop revenues, raise the spending efficiency and increase the level of private sector engagement.

It also confirms Dubai’s ability to deal with the crisis, restore the pace of economic growth, strengthen social benefits and essential services and adopt policies that achieve growth, economic stability and financial sustainability in the medium and long term.

The 2021 budget also demonstrates continued efforts to develop revenues, raise the spending efficiency and increase the level of private sector engagement.

Sheikh Sultan approves largest ever Dhs33.6b budget for Sharjah

Also on Sunday, His Highness Dr Sheikh Sultan Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, approved the general budget for the Emirate of Sharjah of Dhs33.6 billion for the fiscal year 2021.

According to Sharjah Finance Department (SFD), the budget has increased 12 per cent compared to the final 2020 budget with the aim to achieve the strategic vision of the emirate in economic and social development, enhancing financial sustainability, and stimulating the macroeconomic environment.

Sheikh Mohammed Bin Saud Al Qasimi, Chairman of the Sharjah Finance Department, said: "The general budget for this year is the largest in the history of the emirate. The budget of the emirate has adopted many strategic and financial objectives and priorities, which reflected the high directives of His Highness the Ruler of Sharjah and his comprehensive and renewed visio."

Waleed Al Sayegh the Director General of the Finance Department said: "Salaries and wages account for 47 per cent of the total operating budget for 2021, while 43 per cent of the general budget is allocated for developing and improving infrastructure in the emirate, with an increase of 40 per cent over the 2020 budget."

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Dubai's new budget will continue to support social, health, educational and cultural services as well as investments in infrastructure services in the emirate, as part of the objective of making Dubai one of the world’s best cities to live in.

The Dubai’s general budget for fiscal year 2021 reflects the emirates financial stability through its implementation of economic policies.

Mattar Mohammed Al Tayer, Director-General, Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA), confirmed that budget 2021 would enhance the competitiveness of Dubai and the construction of vital infrastructure projects aimed at delivering top-class services and bringing happiness to citizens, residents and visitors alike.

“The budget will bolster the economic growth and the improvement of services towards coping with COVID-19 crisis as well as supporting the social grants and subsidies and the delivery of basic services.

"Initial estimates for 2021 suggest that GDP will see four per cent growth, supported by continued recovery of economic activities. The government will continue to enhance the role of the private sector so it can serve as one of the main engines of economic growth," said Arif Abdulrahman Ahli, Executive Director, Planning and General Budget Sector at DOF.

Salary and wage allowances of the 2021 budget account for 35 per cent of total government spending, in accordance with the requirements of the new human resources law, to ensure family and community stability.