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Financial Circular Concerning preparing the draft budget 2017-2021

In accordance with the provisions of Article 13 of the federal law No. 8 of 2011 concerning the rules of preparing the general budget draft and the final account, and based on the cabinet's resolution No. 7/168 and /6 on extending the term of the budget plan from three to five years, the Minister of Finance issued a circular outlining the procedures for preparing the draft budget on the basis of a medium-term plan for 2017-2021.

The circular includes the following items, directives and guiding information:

  • The necessary steps to prepare the draft budget for the fiscal years 2017-2021 via the automated system, as well as reviewing and auditing all data, attaching supportive and required documents as per the established rules.

  • The need to adhere to the budget cap and the approved strategic objectives.

  • Reviewing revenue forecasts and indicators of each entity in accordance with the strategic plan's objectives.

  • Working according to the approved Budget Planning Handbook as a reference (available on the following link:
    http://www.mof.gov.ae/_layouts/MOF/Publications/Ar/DocLib/budget planning.pdf

  • Preparing the programme structure of each entity according to the budget plan, and learning about the automated system of planning the budget

  • ​​Following the guiding rules governing allocation of cost to activities and services. These can be found on the MoF websites and the automated system via the following links:
    http://www.mof.gov.ae/_layouts/MOF/Publications/Ar/DocLib/cost allocation.pdf

  • Planning employees' budget of the fiscal year 2017, according to the model approved on the automated system and sending it within the budget draft. Guiding rules governing the allocation of employees to services and activities can be found on the MoF website via the following link:
    http://www.mof.gov.ae/_layouts/MOF/Publications/Ar/DocLib/Services allocation.pdf

  • All federal entities shall review and audit financial data of COFOG in relation to various expenses on the automated system for the preparation of the budget

    COFOG Manual can be found on the MoF website via the following link:
    http://www.mof.gov.ae/_layouts/MOF/Publications​/Ar/​DocLib/expenditure classification.pdf

  • Preparing estimates tables of cash flows required to implement the budget draft on the automated system upon finishing inserting the budget draft. Cash flows shall be divided by strategic objectives and groups of expenditures

  • Submitting the budget draft in accordance with the rules, procedures and instructions. no later than 21/04/2016.

Financial Circular No. 1 of 2016 (full text)