UAE 5th in government efficiency

The UAE was ranked fifth in the world in terms of efficiency of government spending in the 2011-2012 Global Competitiveness Report of the World Economic Forum (WEF), reflecting the UAE's leadership's vision and strategy of achieving prosperity for its citizens.

Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and the Minister of Finance, attributed this global achievement to the wise leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai.

The report commended the UAE's ability to enhance the efficiency and transparency of its government spending, two essential elements that determine competitiveness of countries, ranking it in the fifth place among the 142 countries covered by the report. The UAE has been raised two places from its ranking last year.

According to the report, the 2011-2013 zero-based budget initiative of the UAE government was most prominent in increasing efficiency of government spending. Initiated in November 2010, the initiative enhances efficiency of government spending and preserves public funds by clearly determining activity and program costs, outcomes and objectives. The UAE also allocated ministries to develop fresh new budgets every three years which are not limited to increases in spending, but include all items of expenditure.

Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said: "Our ranking proves that the global community has recognised our competitiveness and achievements on an international scale. It is a clear sign of appreciation for the UAE's efforts in increasing government efficiency."

The continuous efforts made by the Ministry of Finance (MoF) in the development of the public finance system and the preparation of the general budget of the federal government have culminated in the improvements in the federal government budget.

Presenting the 2011 budget in the zero-based budgeting system enabled federal bodies to link operational goals with strategic objectives of the government to meet the needs of society. During the last ten-months, reform programs have been implemented within the framework of partnership between MoF, concerned ministries and other federal agencies.

The UAE government is pleased that it has achieved several significant accomplishments, surpassing the standards recognized and proclaimed by OECD countries, particularly in the fields of healthcare and education.

"The UAE has witnessed rapid growth and successfully adopted the necessary changes to the federal government's general budget preparation system. The application of zero-based budgeting supports the objectives of the UAE to achieve competitive capabilities and performance efficiency and increase transparency in government spending," he said.

Al Tayer added: "Under zero-based budgeting, we were able to work with fewer resources, enhance the efficiency of government spending by 6%, and direct our resources toward highly-efficient programs. At the same time, we continued our commitment to the vision and guidance of our wise leadership to achieve social development."

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