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05 March 2024

Sharjah Ruler approves AED 32.240 billion budget for 2023

By Emirates 24/7

His Highness Sheikh Dr. Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has approved AED32.2 billion for the 2023 general budget for Sharjah, promoting economic and social development, enhancing financial sustainability, and stimulating the overall economy.
The budget was based on strengthening the financial foundations to enhance economic competitiveness, cultural, scientific, and tourism, and enhance capabilities to meet various economic challenges, including the state of inflation, high-interest rates and economic stagnation. the Sharjah government is working Strives to reduce the negative effects of these challenges on the financial and economic reality of the Emirate of Sharjah and to protect citizens, residents, companies, and institutions operating in it

The budget has adopted many goals, priorities, and strategic indicators with an economic, social, scientific, and cultural dimensions. Perhaps the most prominent of these goals is to promote investment in the economic infrastructure that enhance the emirate's competitiveness and financial and social sustainability.

The budget worked to control and rationalise spending in areas that may not add value to financial sustainability, to stimulate the efficiency of managing government spending by government agencies in Sharjah. Therefore, expenditures decreased by (12%) from the 2022 budget, but without affecting the critical areas, including employment and economic and social development.

  • Expenses

Waleed Al Sayegh, Director General of the Central Finance Department, indicated that the general budget has decreased by (12%) compared to the 2022 budget, and that the government will continue to support capital projects to ensure continuity in meeting the spending needs on these projects in 2022. The capital projects budget constitutes (14%) of the general budget.

Salaries and wages constitute (28%) of the budget, while operating expenses make up (30%) for 2023, an increase of (4%) compared to 2022. The budget for support and aid accounts for approximately (13%) of the general budget, (5%) more than in 2022, while the balance of loan repayments and interest constitute (13%) of the total, which is an increase of (65%). This will enhance the government's solvency and ability to meet all its obligations.

In addition, to enable the government to achieve its strategic and operational goals and initiatives, the Department of Finance wants to enhance the government's financial stability and sustainability by controlling government spending, thus improving government agencies' ability to meet development requirements.

The process of classifying the budget according to economic sector is one of the most critical tools reflecting the government’s strategic direction. The infrastructure sector ranked first with (35%) of the total general budget for 2023, reflecting the government’s interest in developing the emirate’s infrastructure, the backbone of the development and sustainability process, which attracts foreign and local investments across all vital sectors.

The economic development sector ranked second with an allocation of (34%) of the total general budget for 2022, followed by the social development sector, with (23%). This will help provide the best services, support, and assistance to citizens and residents in Sharjah. The government administration, security, and safety sector constitutes (8%) of the total general budget for 2023.

  • Revenues

With government revenues being the main source of financing for the general budget, the government has paid particular attention to developing these revenues, particularly in improving collection efficiency and developing smart tools and methods to assist in this regard.

The operating revenues are (69%) of the total budget revenues for the year 2023, an increase of (11%), while the percentage of capital revenues reached (11%) for 2023, and tax revenues constituted about (10%) Of the total public revenues, with an increase of about (48%). Customs revenues accounted for (4%), while oil and gas revenues constituted about (6%) Of the total revenue budget for the year 2023, with an increase of about (96%) compared to oil and gas revenues for the year 2022.