The UAE is set to boost its 2022 federal budget spending by an additional AED1.23 billion ($335 million) and it estimates that revenues will be higher by AED374.98 million ($102 million), said the Federal National Council on  twitter. This increased spending will come from the government’s general reserves, it stated.

 

The UAE in October last year had approved a 2022 federal budget of AED58.9 billion, it added. 

 

Dr Tariq Humaid Al Tayer, chairman of the FNC’s committee on Financial, Economic and Industrial Affairs, said the FNC on Tuesday approved two federal bills, including a supplementary budget for the federal government for the fiscal year 2022, and a draft amendment bill to some provisions of Federal Decree-Law 26/2019 regarding public finance.

 

This came at the 13th session of the third ordinary term of the Federal National Council's 17th legislative chapter, which was chaired by Saqr Ghobash, Speaker for the FNC, today.

 

The approved amendments to the law include a new definition for consolidated final statements; several provisions to expand the scope of the public finance law to include government companies; and the introduction of some provisions regulating accounting standards applicable in the UAE.

 

The definition of a consolidated final account has been amended as follows: "An annual report that includes the consolidated annual financial statements of the federal government, which is prepared by the Ministry based on financial statements submitted by federal authorities, in accordance with instructions specified in the annual financial circular issued by the minister."

 

According to the draft law, the UAE government will adopt an accrual-based accounting system, in line with the UAE’s accounting standards. When drafting their budgets, federal authorities must comply with the financial appropriation limits allocated to them by the law on linking the general federal budget.

 

These expenditures will be disbursed, provided that they are specified and payable, in accordance with the relevant applicable legislation.

 

Government companies, as determined by the cabinet under a proposal from the Ministry of Finance, are obligated to provide the Ministry of Finance with the required reports and financial data in the form, in line with the contents and dates specified by the ministry.