United Arab Emirates - Public finance

A federal budget is prepared according to the UAE's development policy, while each emirate is responsible for municipal budgets and local projects. Conservative public expenditure policies have become more necessary as oil revenues have declined since 1983. Deficit spending is common. Abu Dhabi's oil income accounts for the bulk of federal revenues; under the constitution, each emirate contributes 50% of its net oil income to the federal budget.

The US Central Intelligence Agency (CIA) estimates that in 2000 the United Arab Emirates's central government took in revenues of approximately $20 billion and had expenditures of $22 billion. Overall, the government registered a deficit of approximately $2 billion. External debt totaled $12.6 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

United Arab Emirates

REVENUE AND GRANTS 100.0% 20,000
Tax revenue 17.7% 3,532
Non-tax revenue 16.2% 3,235
Capital revenue 0.1% 17
Grants 66.1% 13,216
EXPENDITURES 100.0% 22,000
General public services 3.2% 711
Defense 30.1% 6,613
Public order and safety 13.8% 3,032
Education 17.3% 3,812
Health 7.2% 1,589
Social security 3.2% 704
Housing and community amenities 1.6% 361
Recreation, cultural, and religious affairs 1.4% 318
Economic affairs and services 4.5% 999
Other expenditures 17.6% 3,861

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