Dubai to cut spending by upto 25%

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The Supreme Fiscal Committee has asked all government departments to reduce expenditure by 20 to 25 per cent in a bid to help the emirate achieve a budget surplus of Dh3-Dh3.5 billion until 2013, Ahmad Humaid Al Tayer, Member of the Supreme Fiscal Committee.

Ahmad Humaid Al Tayer said ?Fiscal prudence comes as the government looks to do some trimming of its own after running up deficits to the Dubai budget 2011 and to fill the resulting financing gap, expenditure by government bodies in Dubai should be cut by 20 to 25 per cent until 2013.?
?There is a persistent need to restructure and merge operations of several government entities, departments and commissions to reduce government expenditure in general,? he said.
However, he asked the government entities not to increase their revenues by charging more fees or indirect taxes for the services they provide.

Dr Mohammad Al Asoomi, a UAE-based economist, said: ?There are no worries about reducing government expenditure. All UAE nationals, residents as well as the business community should not be concerned by this attempt. Such a policy has been implemented in the Gulf in 1986 and 1998 when the region faced difficulty in economy. However, with similar situation what Dubai is looking for would be useful and won?t affect the economy, but would come with more saving to the government.?

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