The Dubai government wants entities to cut down spending by 20 to 25 per cent to help achieve a budget surplus of Dh3-Dh3.5 billion by 2013, said Ahmad Humaid Al Tayer, Member of the Supreme Fiscal Committee.
However, he urged government departments not to increase their revenues by charging more fees or indirect taxes for the services they provide, reported Gulf News.
“Fiscal prudence comes as the government looks to do some trimming of its own after running up deficits to the Dubai budget 2011,” Al Tayer told the daily.
He said expenditure by government bodies should be cut by 20 to 25 per cent until 2013 to fill the resulting financing gap. He also emphasised on a 'persistent need to restructure and merge operations' of several government entities, departments and commissions.
According to the budget for 2011, the emirate's government expects to generate Dh29.9 billion in revenue against expenditure of Dh33.6 billion, leaving a deficit of Dh3.77 billion.
Dubai is not concerned about the budget shortfall and is looking for 'alternative revenue streams'. "It is a precautionary procedure,” said Al Tayer.
He also called for the setting up of an entity to manage the public debt in Dubai, reported the daily.