DUBAI, Jan 12, 2011 – Dubai\’s government on Wednesday announced the budget for this year, projecting a deficit of 3.778 billion dirhams ($1.03 billion), and 23 percent of expenditures allocated to finishing infrastructure projects.
Government revenues are expected to reach 29.91 billion dirhams ($8.2 billion), while expenditure is forecast at 33.684 billion dirhams ($9.1 billion), according to a statement by Dubai\’s Department of Finance.
The deficit represents 11.2 percent of expenditure, but its relation to gross domestic product was not provided.
Public expenditure for the completion of pre-approved infrastructure projects that "promote economic growth and stimulate flow of local and foreign investments" was set at 7.5 billion dirhams ($2 billion) it said.
Abdulrahman Al-Saleh, director general of the finance department, said the budget reflects the directives of Dubai\’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, to continue developing Dubai\’s infrastructure and support its macro-economy.
Standard Chartered bank said last month it expected Dubai\’s economy to grow at 4 percent this year as it bounces back from a recession that struck in 2009 as a result of the global financial crisis.