Dubai’s budget for the next year with a deficit of 2.5 billion dirhams

In the most prominent evidence of the severity of its economic crisis, the Emirate of Dubai announced a budget for the year 2020 with an expected deficit of 2.5 billion dirhams (approximately 681 million dollars).

This large deficit is reflected in a decrease in infrastructure spending, with a record rise in other spending items in preparation for Expo 2020.

The Dubai government said in a statement that spending will increase by 17% to a record level of 66.418 billion dirhams ($18.1 billion) compared to the original 2019 budget of 56.8 billion dirhams.

Non-tax revenues represent 60% of total revenue, while revenue from taxes represents 29%, income from government investment represents five percent, while oil revenues reach six percent of the total.

The budget expected a real deficit of 2.5 billion dirhams next year, down from the expected budget deficit of 2019 at 5.8 billion dirhams.

The budget did not specify the banks to increase the planned expenditures, but it stated that the wages and salaries in the budget will represent 30% of the spending, while spending on grants and support represents 24%, and announced a special reserve of three percent of government spending.

Dubai will host the World Trade Expo from October 2020 to April 2021 amid widespread human rights and international calls to boycott the exhibition in protest against UAE crimes.

Earlier, Dubai expected its economy to grow 3.2% next year compared to 2.1 this year, and its economy grew by 1.94% in 2018, which is the slowest pace since the contraction in 2009 due to the debt crisis.

Dubai has been experiencing a downturn in the vital real estate sector for years, while growth has fallen in the trade and tourism sectors, sectors that Dubai considers to be one of the pillars of its economy, and work has been suspended on many important projects, including the Al Maktoum Airport expansion project that is supposed to become the largest airport in the world.