Abu Dhabi Forecasts $23 Billion Budget Deficit in 2010, Prospectus Shows - Bloomberg

Abu Dhabi, the oil-rich emirate, forecast a second consecutive budget deficit this year, the shortfall to be covered by transfers from state-run investment bodies, according to a government-guaranteed bond prospectus.

Government spending will exceed revenue by 84.9 billion dirhams ($23.1 billion) this year, compared with 126.5 billion dirhams in 2009, according to statistics in the Waha Aerospace BV prospectus obtained today by Bloomberg News. The budget was based on an assumed average oil price of $60 a barrel, compared with $40 last year.

The deficits from 2009 and 2010 will be funded by transfers from Abu Dhabi Investment Authority and Abu Dhabi Investment Council, the prospectus said.