Sharjah approves $9bn general budget for 2023

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  • The general budget for this year aims to achieve financial sustainability and enhance the economic competitiveness of the emirate
  • The budget has adopted many goals, priorities and strategic indicators with economic, social, scientific and cultural dimensions.

Sharjah, UAE – Sharjah ruler Sheikh Sultan bin Muhammad Al Qasimi, has approved the emirate’s general budget for 2023 with total expenditures amounting to nearly (AED32.2 billion) $9 billion. 

The general budget for this year aims to achieve financial sustainability and enhance the economic competitiveness of the emirate.

The general budget has adopted many goals, priorities and strategic indicators with economic, social, scientific and cultural dimensions. The most prominent of these goals is to promote investment in infrastructure and other economic activities, which enhance the emirate’s competitiveness and the sustainability of its financial position. 

It is also meant to provide social support in various forms and methods that serve citizens and work to meet different life needs. It guarantees them social stability and economic well-being, which motivates them to give their best and contribute seriously and effectively to making the emirate of Sharjah a scientific and cultural platform, a tourist environment and a distinctive economy. In addition, it enhances Sharjah’s cultural, economic and financial status on the local, regional and international map.

Expenses

Compared to the 2022 budget, the general budget has decreased by 12 percent. However, because the capital projects budget makes about 14% of the overall budget, the government continues to support it to assure continuity in meeting the expenditure needs on these projects in 2023.

As for salaries and wages, they constituted 28 percent of the general budget for 2023. The same applies to operating expenses, which constituted 30 percent for 2023 with a decrease of four percent compared to the 2022 budget.

As for the support and aid budget, it constituted about 13 percent of the general budget and achieved an increase of five percent compared to the 2022 budget, while the loan repayments and interest budget accounted for 13 percent of the total budget. General Assembly for 2023, shows an increase of 65 percent over the 2022 budget, which is an enhancement of the government’s ability and financial solvency to pay all its obligations.

In general, and to enable the government to achieve its strategic and operational goals and initiatives, the Finance Department has worked to enhance the stability and financial sustainability of the government. It has controlled government spending while working to meet the requirements of government agencies and improve their ability to meet development requirements and develop the level of rationalisation of government spending.

Classifying the budget based on economic sectors is one of the most important tools that reflect the strategic direction of the government. The infrastructure sector ranked first among the sectors in the general budget and constituted 35 percent of the total general budget for 2023. This reflects the exceptional interest of the government in developing infrastructure for the emirate as the central pillar of development and sustainability while attracting foreign and local investments in all vital sectors.

The economic development sector is relatively important in second place, as it constituted about 34 percent of the total general budget for 2023, with an increase of one percent over 2022. As for the social development sector, it came in third, as its importance constituted about 23 percent of the total public budget for 2023, to provide the best services, support and assistance to citizens and residents. The relative importance of the government administration, the security and safety sector constituted about eight percent of the total general budget for 2023.

Revenues

As for the government’s general revenues, at a time when these revenues constitute the primary source of financing the general budget, the government has taken an interest in developing these revenues, improving collection efficiency, and developing smart and technical tools and methods that enhance this trend. Moreover, it is clear from the analysis of public revenue trends, that operational revenues are 69 percent of the total revenue budget for 2023, an increase of 11 percent over the operating revenues for 2022.

The percentage of capital revenues reached 11 percent for 2023, while tax revenues constituted about 10 percent of total public revenues, with an increase of about 48 percent over tax revenues for 2022. In the same direction, customs revenues accounted for four percent, an increase of about four percent over 2022. Oil and gas revenues constituted about six percent of the total revenue budget for 2023, with an increase of about 96 percent compared to 2022.

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