Dubai gov't plans to raise 2009 spending by 20% - report

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BUDGET INCREASE: Dubai finance chief says the government will increase spending by 20 percent in 2009. (Getty Images)

Dubai's government plans to increase public expenditure by around 20 percent in 2009 to stimulate the service-based economy, a senior policy-maker was quoted as saying on Saturday.

Nasser al-Shaikh, director-general of Dubai's finance department said in comments published in the UK's Financial Times it would increase from some 30 billion dirhams ($8.17 billion) that was budgeted for public spending in 2008.

"The role of government is to increase spending during challenging times and provide a stimulus to the economy," Shaikh told the paper.

Dubai has slashed by around half its economic growth projection for 2009 to between 4 to 6, Shaikh said in remarks published on Thursday.

Shaikh is a member of a Dubai committee set up to respond to a financial crisis that has shaken investor sentiment and heightened concerns about transparency in the emirate.

Dubai's sovereign debt stands at $10 billion while the debts of state-affiliated firms amount to $70 billion, Mohamed Alabbar, a member of Dubai's ruling council and chairman of Emaar Properties said in November. (Reuters)

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