The UAE’s regime has kept its military spending in the federal budget allocated for the year 2020 in light of the escalation of its foreign interventions, especially the war on Yemen.
The UAE Cabinet, headed by Mohammed bin Rashid, announced the adoption of the federal budget for 2020 totaling 61.354 billion dirhams, the largest since the founding of the state. The budget for this year was 60.3 billion dirhams.
The announcement of the federal budget for the new year 2020 identified some key areas of expenditure such as social development, infrastructure, economic resources and government affairs.
The announcement included 7.8 billion dirhams for other unspecified federal expenses, or 11.1 per cent of the total budget, raising questions about its fate, although its spending was linked to lobbyists financed by Abu Dhabi and state mercenaries.
The UAE’s military spending, which observers say casts a shadow over the country’s economy and plunged it into an unprecedented global crisis, was completely absent in the details of the federal budget.
More military deals have become an obsession with the minds and policies of the rulers of the UAE to serve their aggressive ambitions. This comes despite the escalating economic crisis experienced by the state, especially in the Emirate of Dubai.
This is due to the state of foreign wars of the rulers of the UAE, in Yemen, Libya, Tunisia, Egypt and the Horn of Africa, where the state spends billions of dollars a month to finance those wars in recent years.
It is estimated that the UAE will spend at least $ 1.3 billion a month in the Yemen war, except for ammunition, jet fuel and amortization.
The UAE suffers greatly from the weak economy with increasing government expenditures and imposing more taxes and levies on citizens and residents. Yemen through Egypt, Eritrea and Somalia.
International experts have predicted that the UAE’s budget deficit, registered since 2015, will continue for at least another two years as it suffers from an escalating economic crisis.
A quarterly survey showed that the UAE economy will grow slightly slower than previously expected, as the region’s economies will come under pressure from oil production cuts, falling crude prices and weak global growth.
The Reuters poll of 22 economists delayed to 2020 what they expect the UAE to return to a budget surplus for the first time since it began a deficit in 2015.
The poll, conducted three months ago, predicted a UAE surplus in 2018, which was not achieved in light of the deepening economic crisis and suffering the repercussions of military interventions and causing the Gulf crisis.
The UAE’s federal budget, often accounting for about 14 percent of the country’s total financial spending, is provided by the seven emirates, particularly oil-producing Abu Dhabi, the rest.
Each local government of the seven emirates has a special budget that often exceeds the value of the federal budget, especially in Abu Dhabi and Dubai, which each have a large budget for expenditures, including contributing to the federal budget.