DUBAI: Dubai's government Wednesday announced the budget for this year, projecting a deficit of AED3.778 billion ($1.03 billion, 793 million euros), and an allocation of 23 percent of expenditure to the completion of infrastructure projects. Government revenues are expected to reach AED29.91 billion ($8.2 billion, 6.28 billion euros), while expenditure is forecast at AED33.684 billion ($9.1 billion, 7.07 billion euros), according to a statement by Dubai's Department of Finance. The deficit represents 11.2 percent of expenditure, and according to the statement it is "well within the targeted bracket of three percent of Dubai's gross domestic product", a figure which was not specified. Public expenditure for the completion of pre-approved infrastructure projects that "promote economic growth and stimulate flow of local and foreign investments" was set at AED7.5 billion ($2 billion, 1.57 billion euros), it said. Social development, including health and education services, was allocated 24 percent of expenditure, while the general services and government sector, including the ruler's court, has been allocated 11 percent, it said. Twenty-two percent of the expenditure has been earmarked for the security, safety and judicial sectors. Expenditure in 2011 is forecast to be slightly lower than in last year's budget, which had set spending at AED35.4 billion ($9.63 billion, 7.43 billion euros), with deficit expected at AED6 billion ($1.63 billion, 1.26 billion euros). Abdul Rahman Al-Saleh, director-general of the finance department, said the budget reflects the directives of Dubai's ruler, Sheikh Mohammad Bin Rashed Al-Maktoum, to continue developing Dubai's infrastructure and support its macro-economy. Standard Chartered Bank said last month it expected Dubai's economy to grow at four percent this year as it bounces back from a recession that struck in 2009 as a result of the global financial crisis. – Agence France
