Spending remains cautious as IMF projects consolidated fiscal deficit of 3.9% this year
The cabinet of the United Arab Emirates approved a AED48.7 billion ($13.3 billion) federal budget for 2017, state news agency WAM reported on Sunday, almost level with the original budget of AED48.56 billion for 2016.
The UAE federal budget traditionally accounts for only around 14 percent of total fiscal spending in the country; the seven individual emirates, mainly oil-producing Abu Dhabi, provide the rest.
But the decision to keep federal spending flat suggests UAE authorities remain cautious about spending as low oil prices pressure state finances.
The International Monetary Fund projects the UAE will post a consolidated fiscal deficit, including the federal government and all the emirates, of 3.86 percent of gross domestic product this year.
The cabinet also approved a AED248 billion federal budget for the five years through 2021, WAM said.