Dubai on Sunday (December 10th) adopted its 2018 budget foreseeing expenditure of 56.6 billion dirhams ($15.5 billion), a 19.5% increase over last year, as it prepares to host Expo 2020, AFP reported.
But the 2018 budget of Dubai, one of seven emirates in the UAE, also forecasts a deficit of $1.7 billion -- the highest since the 2009 financial crisis, a government statement said.
"Dubai's commitment to Expo excellence, and to UAE's leading status on the international scene has led to approving a budget with an 6.2 billion dirham ($1.68 billion) deficit," said Abdulrahman Saleh Al Saleh, who heads Dubai's government finance department.
He said the high expenditure was the result of a "46.5% rise in the infrastructural spending over the fiscal year 2017, and including over 5 billion dirhams ($1.36 billion) dedicated to Expo projects".
"The Expo presents challenges that require us to focus on availing construction expenses needed for the mega infrastructure projects," he said.
According to the statement, the investment value of the Expo is estimated at 25 billion dirhams ($6.8 billion).
The 2018 budget deficit is the largest since the 2009 global financial crisis.
The government said the 2018 budget forecasts a rise in infrastructure spending "which makes up 21% of the total government expenditure".
Dubai also expects a 12% increase in public revenues next year compared to 2017, with oil income representing 6% of the total, the statement added.
