UAE Approves Balanced Budget of 71.5 Billion Dirhams for 2025

PC: Arabian Business

The United Arab Emirates cabinet has passed a balanced budget for the fiscal year 2025 of 71.5 billion dirhams ($19.47 billion), the state news agency WAM said on Tuesday. This is part of a new government spending spree, one that puts it 12% higher than estimates from the last fiscal year. Still, despite such an increase in cost, the United Arab Emirates still adheres to balancing its budget, as revenues have to be at par with expenses at 71.5 billion dirhams.

As Part of a Wider Financial Plan

The 2025 budget was approved within the UAE’s multi-year financial plan from 2022 through 2026. The country had already in October last year considered an approval of the budget for the 2024-2026 period, which sums up to $52.3 billion. These multi-year frameworks are manifestive commitments of the UAE to financial stability and prudent long-term fiscal planning.

Social Development at the Forefront

The 2025 budget will allocate a huge chunk towards spending on social and welfare services since the efforts primarily focus on uplifting citizens’ well-being in the UAE. About 40% of the whole budget will be spent on social development projects and pensions. In that, money directed to the education sector will be the highest because the government would focus on enhancing services to educate. Probably, most of the budget will be set aside in the health sector, and therefore, these commitments would be shown by the government in the health sector. The allocations also show high commitments by the government towards education and the health sector, which were taken very seriously in order to see that these are supported for the benefit of the people in that country.

Government Affairs and Other Allocations

To complement social spending, over 35% of the budget will be set aside for government affairs to ensure public administration and governance. Balanced allocations in those areas include other allocation of infrastructures, economic affairs, and financial investments, as others have relatively small budgets compared to the sectors listed above with a balanced approach demonstrated by its fiscal management.

The United Arab Emirates is a federal state consisting of seven emirates while each emirate has the right to pursue independent budget-initiatives, which are in turn complementary to the federal budget. It attaches great importance to social expenditures; hence this underlines the aspirations of the UAE in supporting its population while retaining financial stability.