UAE’s private sector has the ability to cope with the trend-setting 70 per cent salary hike declared by the Federal Government for its 60,000 employees, according to Dr Mohammed Khalfan bin Kharbash, Minister of State for Financial and Industrial Affairs.
The minister, allaying fears that a sweeping salary hike would stoke inflation, also dismissed suggestions that the move would result in creating further imbalances in public and private sector payscales.
Speaking to journalists in Dubai, Dr Kharbash said the salary increase, to be effective from January 2008, was aimed at rectifying the prevailing pay structure disparity between federal and local government employees. Apart from 60,000 federal government employees and personnel at the Interior Ministry, several thousands of pensioners including retired civilian and military personnel, will also benefit from the generous 70 per cent increase allocated in UAE’s 2008 budget approved by the cabinet on Tuesday.
The allocation of the federal budget for the fiscal year 2008, the largest ever in the UAE’s history and the fourth consecutive zero-deficit budget, rose to Dh34.9 billion. Compared with the 2007 budget of Dh28.4 billion, it is an increase of Dh6.7 billion, or 23.8 per cent.
Dr Kharbash said as the private sector of the UAE is very dynamic, the move is unlikely to put any pressure on it. “Our private sector is not only more dynamic but also more resourceful. I would not have said 10 years ago.”
Younis Haji Al Khoori, Undersecretary of the Ministry of Finance and Industry, said 51 per cent of the budget allocation is for the services sector.
The budget, which is issued a year earlier for the second time in a row, included the Dh1.4 billion financial allocations for implementation of the federal government strategy announced by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Education sector received the largest allocation in the budget with Dh9.7 billion earmarked for general and higher education. The Ministry of Health’s budget received a 66 per cent increase to reach Dh2.5 billion, while an amount of Dh1.02 billion was added to the budget of Interior Ministry to enhance security sector.
The Ministry of Justice also received a boost of Dh199.4 million to implement its strategy, aimed at creating a modern catalyst for legislation, improving service and developing alternative systems for litigation.
Al Khoori said the new budget has lined up 95 programmes and 340 sub-programmes compared with 2007 budget’s 85 and 156 respectively. Source
The minister, allaying fears that a sweeping salary hike would stoke inflation, also dismissed suggestions that the move would result in creating further imbalances in public and private sector payscales.
Speaking to journalists in Dubai, Dr Kharbash said the salary increase, to be effective from January 2008, was aimed at rectifying the prevailing pay structure disparity between federal and local government employees. Apart from 60,000 federal government employees and personnel at the Interior Ministry, several thousands of pensioners including retired civilian and military personnel, will also benefit from the generous 70 per cent increase allocated in UAE’s 2008 budget approved by the cabinet on Tuesday.
The allocation of the federal budget for the fiscal year 2008, the largest ever in the UAE’s history and the fourth consecutive zero-deficit budget, rose to Dh34.9 billion. Compared with the 2007 budget of Dh28.4 billion, it is an increase of Dh6.7 billion, or 23.8 per cent.
Dr Kharbash said as the private sector of the UAE is very dynamic, the move is unlikely to put any pressure on it. “Our private sector is not only more dynamic but also more resourceful. I would not have said 10 years ago.”
Younis Haji Al Khoori, Undersecretary of the Ministry of Finance and Industry, said 51 per cent of the budget allocation is for the services sector.
The budget, which is issued a year earlier for the second time in a row, included the Dh1.4 billion financial allocations for implementation of the federal government strategy announced by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Education sector received the largest allocation in the budget with Dh9.7 billion earmarked for general and higher education. The Ministry of Health’s budget received a 66 per cent increase to reach Dh2.5 billion, while an amount of Dh1.02 billion was added to the budget of Interior Ministry to enhance security sector.
The Ministry of Justice also received a boost of Dh199.4 million to implement its strategy, aimed at creating a modern catalyst for legislation, improving service and developing alternative systems for litigation.
Al Khoori said the new budget has lined up 95 programmes and 340 sub-programmes compared with 2007 budget’s 85 and 156 respectively. Source
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