Sheikh Sultan approves Sharjah's Dhs32.2 billion budget for 2023

His Highness Dr Sheikh Sultan Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, approved the emirate’s general budget for 2023 with total expenditures amounting to nearly Dhs32.2 billion.

The general budget for this year aims to achieve financial sustainability and enhance the economic competitiveness of the emirate.

The budget worked to control and rationalise spending in areas that may not add value to the competitiveness and financial sustainability index.

Therefore, expenditure decreased by 12 per cent from the 2022 budget, but without affecting the most critical areas. These include employment and economic and social development.

 Sheikh Sultan Bin Ahmed Bin Sultan Al Qasimi, Deputy Ruler of Sharjah, said that the Sharjah Government’s budget for 2023 mainly aims to support sustainable development, achieve financial sustainability, increase competitiveness and advance government services.

He stressed that the emirate’s new budget considers all social, health, educational, knowledge, cultural and media services, as well as infrastructure, investment and tourism, through a package of initiatives, projects and activities covering all sectors.

It also prioritises the interests of citizens, residents, visitors and tourists, through a range of services and infrastructure projects, he further added.

Sheikh Mohammed Bin Saud Al Qasimi, Head of the Central Finance Department in Sharjah, said, "The general budget for 2023 has two dimensions. The first is economic and social development and infrastructure, and the other is strategic, represented in developing and strengthening the government's financial sustainability."

Waleed Al Sayegh, Director-General of the Central Finance Department in Sharjah, stressed we are witnessing financial and economic instability in many countries due to many international economic practices, including high inflation rates and an increase in interest rates. This may lead to economic stagnation and limit the investment and financing capabilities of many international and local economies.

Waleed Al Sayegh indicated that the general budget decreased by 12 per cent compared to the 2022 budget. However, the government continued to support the capital projects budget to ensure continuity in meeting the spending needs on these projects in 2023, as this budget constitutes 14 per cent of the general budget. As for salaries and wages, they constituted 28 per cent of the general budget for 2023. The same applies to operating expenses, which constituted 30 per cent for 2023 with a decrease of four per cent compared to the 2022 budget.

As for the support and aid budget, it constituted about 13 per cent of the general budget and achieved an increase of five per cent compared to the 2022 budget, while the loan repayments and interest budget accounted for 13 per cent of the total budget. General Assembly for 2023 shows an increase of 65 per cent over the 2022 budget, which is an enhancement of the government's ability and financial solvency to pay all its obligations.

The economic development sector is relatively important in second place, as it constituted about 34 per cent of the total general budget for 2023, with an increase of one per cent over 2022. As for the social development sector, it came in third, as its importance constituted about 23 per cent of the total public budget for 2023, to provide the best services, support and assistance to citizens and residents. The relative importance of the government administration, the security and safety sector constituted about eight per cent of the total general budget for 2023.

Revenues

The government has taken an exceptional interest in developing general revenues. Operational revenues are 69 per cent of the total revenue budget for 2023, an increase of 11 per cent over the operating revenues for 2022.

The percentage of capital revenues reached 11 per cent for 2023, while tax revenues constituted about 10 per cent of total public revenues, with an increase of about 48 per cent over tax revenues for 2022. In the same direction, customs revenues accounted for four per cent, an increase of about four per cent over 2022. Oil and gas revenues constituted about six per cent of the total revenue budget for 2023, with an increase of about 96 per cent compared to 2022.

WAM