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Federal Budget 2016

With a zero deficit, prepared to manage financial resources efficiently

The Cabinet approved the budget of the UAE for the fiscal year 2016 with a value of AED 48.557 billion with a zero deficit, and within the framework of the efficient management of the government financial resources to achieve sustainable development. The budget was in line with the initiatives and projects adopted in the Federal Government strategy and prepared in accordance with the principles of a zero-based budget.

The budget, as well as income and expenditure estimates in government agencies, was prepared and examined in accordance with the provisions of the laws, in addition to rationalising public spending and controlling expenditure. This should not affect government entities in achieving their goals in an effective and efficient manner, and is a development budget that supports investment spending in production fields

MoF released the financial circular No 2 of 2015 on the preparation of the 2016 general federal budget. This initiative is in line with the medium term 2014-2016 plan for ministries and independent federal authorities, and follows the UAE Cabinet’s Resolution No. 1/181 of 2008, which mandates the ministries and federal authorities to prepare the general federal budget on the basis of a three-year medium-term plan, to adopt the principles of a zero-based budgeting system, and work as per the rules and regulations of the consolidated financial procedures manual for the preparation of the draft budget for the next year.

Why do we use a zero-based budgeting system?

The ministry’s reasoning behind adopting a zero-based budgeting system is to have access to real cost through measuring the financial impact of all approved activities and comparing them to the cost of similar activities offered in the private sector. This falls in line with the implementation of the strategy that aims to improve the management of the federal government, adhering to prudent fiscal policies and increasing sources of income, which in turn confirms the strength and durability of the UAE’s economic situation and its opportunity for growth, while providing and maintaining high levels of services for citizens and residents.​

Federal Budget Allocations 2016

The biggest part of the budget has been allocated for the development and social benefits sector with a rate of 49.1%, for services and benefits that include:​

41 %

The government has allocated most of the budget to social development programmes, projects and initiatives that serve the community and contribute to the welfare and happiness of its citizens and residents. It also adopts the latest technology to provide the best services that meet the needs and requirements of people, and positively affect the development of society.

8 %

The provision of healthcare is another major priority for the UAE government. Therefore, the government provides all the support needed to enhance the capabilities of this sector and improve its infrastructure, as well as the performance levels and skills of medical teams, through the adoption of best international standards and practices to provide high-quality services and support scientific and medical research.

13.44 %

The education sector is of the highest priority for the UAE. The government strives to continually provide world-class educational services, improve higher education institutions and build scientific and research centres, to develop a generation of qualified leaders. The education sector is one of the main pillars upon which the UAE highly relies, to achieve excellence and development.

Budget Allocation by Sector Budget Allocation by Sector