| 24 April 2024, Wednesday |

Sharjah approves $9.37bn budget for 2022

According to a tweet from the Sharjah Government Media Bureau, Sharjah’s Ruler Sheikh Dr Sultan bin Muhammad Al Qasimi approved the emirate’s Dh34.42 billion ($9.37 billion) budget for 2022, prioritizing infrastructure and social and economic growth.

According to a government statement issued on Tuesday, the 2022 budget, which is 2% more than the previous year, is planned to create around 1,000 employment for freshly graduated UAE nationals.

Approximately 44% of budget expenditure will go toward the construction and upgrading of the emirate’s infrastructure, 27% to economic growth with an emphasis on stimulus programs, and 21% to social development. Approximately 8% will be allocated to government administration.

The Sharjah government budget would “continue the emirate’s march toward reaching the greatest levels of quality, success, and sustainable growth in all sectors and fields,” stated Sharjah’s Deputy Ruler, Sheikh Sultan bin Ahmed bin Sultan Al Qasimi.

Sharjah’s administration has made steps to assist companies and individuals in mitigating the effects of the Covid-19 epidemic. In response to the economic issues posed by the global crisis, Sharjah implemented Dh1 billion in economic stimulus measures in 2020, including the waiver, reduction, or cancellation of some government levies and charges.

While the rest of the world is in turmoil due to the pandemic’s negative effects, Sharjah has struck a “ideal balance” between development and services, resulting in the continued implementation of capital projects and initiatives, according to Waleed Al Sayegh, director general of the Central Finance Department.

The Sharjah government has vowed to continue financing capital projects in order to ensure that they are completed in 2022. The budget for capital projects accounts for 30% of the emirate’s total budget.

Salaries and salaries account for 25% of the 2022 budget, a 4% rise year on year. According to the official statement, operating expenditures account for 25% of the emirate’s budget, up 3% from 2021.

While loan repayments and interest account for 7% of the total, an increase of 18%, this will strengthen the “government’s solvency and capacity to satisfy all of its obligations.”

Eleven percent will be dedicated to welfare and social justice, a 3% increase over 2021 and reflecting the emirate’s emphasis on social support. Capital spending will account for 2% of the budget.

According to the official announcement, government revenue is predicted to grow by 49% in 2022 compared to 2021.

Operating revenue is expected to account for 53% of total revenue in 2022, representing an 8% growth year on year. Tax collections will account for nearly 6% of total revenue, a 20% increase over previous year. Capital revenues are estimated to account for 35% of total revenue.

Revenue from oil and gas is likely to be roughly 3% more than in 2021, according to the report, which did not provide a comparison number. The income from customs will be 3%.

“Because government revenue is the primary source of funding for the general budget, the government has paid special attention to the development of these revenues, particularly in terms of improving collection efficiency and developing smart tools and methods to assist in this regard,” the statement reads.

  • The National News