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FINANCIAL NEWS
UAE gov’t to cut spending by 4.2 percent in 2015
28 Jul 2015
(MENAFN) The government of the UAE is expected to cut spending by 4.2 percent this year as it begins to retrench because of low oil prices, which are slashing its energy export revenues, Arab News reported.
Consolidated government spending, including the federal government and the UAE’s seven individual emirates, is expected to drop to USD125.5 billion in 2015 from USD130.88 billion in 2014.
This would follow several years in which spending increased at rates of close to 10 percent. The central bank said its projections were based on a study by the International Monetary Fund.
The projections show the rise in government spending on employee compensation slowing sharply; such spending would increase only 3.4 percent in 2015 to USD13.28 billion.
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