Deficit-free Dubai budget expected next year

Dubai is expecting a deficit-free budget next year as the emirate moves to slash its operational expenses. It is also planning to decrease its fees to further stimulate the economy but is not contemplating any salary cuts for government employees, Emirates Business has learnt.

According to Nasser bin Hassan Al Shaikh, former director-general of Dubai Department of Finance, Dubai has incurred a Dh4.2 billion deficit this year because of its decision to push all its infrastructure projects.

Talking to Emirates Business before his appointment as Deputy Director of Foreign Affairs at Dubai Ruler's Court, he said the deficit, which has been the result of increased public spending (Dh37.7bn) at a time when non-oil GDP growth is slowing and the price of oil is at low levels, is only 1.3 per cent of the emirate's overall GDP and is thus manageable.