UAE state budget gap narrows 13% y/y in Q1

By bne IntelliNews September 27, 2015

The UAE’s federal government recorded an AED12.1bn ($3.3bn) deficit in the first quarter of the year, widening by 12.5% y/y, as both revenue and spending contracted, the central bank reported.

Total revenue fell 17% y/y to AED74.9bn while spending dropped 16.4% y/y to AED87bn during Q1.

The federal budget focuses mainly on administrative spending, public services and wages for federal employees.

Tax proceeds shrank 19.4% y/y to AED55bn in Q1. Meanwhile, compensation of state employees jumped 36% y/y to AED14.4bn whereas subsidies dropped 3% y/y to AED0.2bn. It is worth noting that the UAE government removed as of August 1 all energy subsidies to boost fiscal consolidation. The measure will help save up to AED107.3bn annually, according to the IMF estimates.

In 2015, the UAE’s federal state budget is expected to report an AED124bn gap, accounting for 2.9% of the forecast GDP, widening from just AED34bn in 2014. Total revenue will fall 25% to AED287bn while spending will virtually flatten at AED411bn.

The revenue estimates do not take into consideration the proceeds stemming from Abu Dhabi National Oil Company (ADNOC) transfers and government investment income, the c-bank underscored.

Related Articles

Turkish Airlines' share price falls further after UK follows US with electronics flight ban

The share price of Turkish Airlines (THY) was down 2.88% by the end of trading on March 21 after the UK joined the US in banning electronic devices larger than smartphones in hand luggage on flights ... more

Turkish Airlines' share price slides after US bans electronic devices on flights

Flag carrier Turkish Airlines (THY) saw its share price fall 1.69% on March 21 after confirming it is among the nine airlines affected by a US cabin baggage ban on large electronic devices on flights ... more

Iran, Syria sign raft of memoranda and deals

Following the purge of foreign-backed rebels in the devastated Syrian city of Aleppo by Iranian, Lebanese and Russian forces, Damascus’s prime minister Imad Khamis was in Tehran to sign five ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss