Cabinet approves biggest, zero-deficit budget

The Cabinet passed on Tuesday the federal budget for the fiscal year 2008, the largest ever in the UAE's history and the fourth consecutive free-deficit state budget.
The budget was approved in a cabinet meeting chaired by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The 2008 budget bill, submitted by the Ministry of Finance and Industry, accounted for Dh 34.9 billion, an increase of Dh 6.7 billion, or 23.8 percent, compared with the 2007 budget.
The budget, which is issued an year earlier for the second time on a row, included the Dh 1.4 billion financial allocations for implementation of the federal government strategy announced by Sheikh Mohammed. It also contains allocations resulting from the 70 percent increase in salaries of employees at federal government, personnel at the Interior Ministry and retired civilian and military personnel.

Education received the largest allocation in the budget with Dh 9.7 billion earmarked for general and higher education. The Ministry of Education will receive a budget of Dh 7.1 billion to enable it implement the strategic plan of developing school environment and to introduce modern technology methods. Higher education budget was also boosted to Dh 2.3 billion.

The Ministry of Health's budget received a 66 percent increase to reach Dh 2.5 billion, while an amount of Dh 1.02 billion was added to the budget of Interior Ministry to enhance security sector. The amount will be used to maintain security and stability, to enhance capabilities of police personnel, to modernize civil defence equipment, to continue the e-passport project, to boost Emiratisation plan and to support the budget of Emirates Identity Authority.

The budget also covers the increase in salaries of diplomats and the drive to enhance diplomatic representation, ordered earlier by President H.H. Sheikh Khalifa bin Zayed Al Nahyan.
The Ministry of Justice also received a boost of Dh 199.4 million to implement its strategy, aimed at creating a modern catalyst for legislation, improving service and developing alternative systems for litigation.

The Culture, Youth, Sports & Community Development sector will use its Dh 138 million grant to bolster its strategy, aimed at preserving national identity, spreading cultural awareness, enhancing youth role and supporting UAE Football Association.

The economy sector was granted a Dh 111.5 million boost to streamline its strategy of updating economic laws, providing attractive environment for investments and supporting small and medium-sized enterprises.

A Dh 137 million grant was ear-marked to strengthen Labour Ministry's efforts to develop a comprehensive demographic policy.

The 10 key programmes in the 2008 budget comprised of:

• MoE's general education (Dh 6.5 billion),
• MoI's Police services (Dh 2.3 billion),
• MoH's curative services (Dh 1.9 billion),
• MoSA's social development (Dh 1.3 billion),
• MoFA's external affairs (Dh 1.2 billion),
• FEWA's electricity production & distribution (Dh 1.01 billion),
• UAE University's education services (Dh 1.06 billion),
• Higher Colleges of Technology's education services (Dh 800 million),
• MoPW's roads network (Dh 544 million),
• MoI's internal affairs (Dh 515 million).

The total cost for infrastructure projects in the budget has been increased to Dh 8.6billion from Dh 6.6 billion in 2007. Source