Federal Budget Framework and Steps
Systematically created for the UAE’s social and economic development
Introducing the general budget
The general budget is the financial programme of the federal government used to achieve economic and social development. This is accomplished through the optimal distribution and efficient use of resources within the framework of the federal strategy on the expected spending by federal authorities during the coming fiscal year*, provided that income and expenditure are balanced.
According to the decree of Federal Law No 8 of 2011, a separate budget for federal service authorities may be earmarked, and submitted to MoF for approval within budget law. Also, all federal authorities may - by virtue of a Cabinet resolution - be assigned to prepare a draft medium-term budget. The Cabinet resolution shall determine the budget's terms in years provided that it includes annual estimates for both income and expenditure as approved by the Cabinet.
The steps of issuing the budget law
The Minister of Finance issues a circular that specifies the necessary steps for the preparation of next year’s draft budget during the third month of the present fiscal year. Such a circular shall include budget cap, approved strategic objectives, indicators, revenue forecast and the fixed deadline for submitting a draft budget to MoF. The minister shall issue another circular on closure of accounts and preparing the final account of the previous fiscal year.
Each federal authority determines its Programmes, plans and Key Performance Indicators (KPIs) according to the strategic plan approved by the Cabinet within the budget cap. All authorities must also submit their initial forecasts for revenue and expenses allocated to chapters, line items, Programmes and activities agreed upon, along with performance measures and efficiency indicators according to the circular issued by the minister, which specifies submission deadline.
* The fiscal year is composed of 12 months, starting from 1st January and ending on 31st December of each year.