Wednesday, 15 December 2010

UAE budget includes a deficit

The Government budget under debate at the Federal National Council (FNC) contains a feature not seen in six years: a small deficit.

While the Federal Government tabled a Dh41 billion (US$11.16bn) spending plan early last month, it only yesterday revealed it was projecting revenues at Dh38bn for next year. That clashes with the balanced-budget philosophy that has prevailed between 2008 and this year. The Government ran surpluses between 2005 and 2007 and last ran a deficit in 2004.

Younis al Khouri, the UAE Finance Ministry under secretary and director general, said on the sidelines of an FNC gathering yesterday it was 'a very minor deficit'. The shortfall was 'not a concern as of yet and definitely we'll be looking for alternatives throughout the year', he said.

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