Overview of the Federal Circular No (10) of 2019 on Preparing the Federal Public Budget Draft for 2020
The Federal Circular No (10) of 2019 issued by the Federal General Budget is a crucial administrative document that guides the preparation and planning of the federal budget for the fiscal year 2020. This circular is part of the broader framework established by the UAE government to ensure transparency, efficiency, and strategic allocation of public funds within the federal entities.
Purpose and Scope of the Circular
This circular aims to provide comprehensive directives for ministries and independent federal entities involved in the budget preparation process. It ensures that all entities align their budget estimates with the strategic objectives outlined in the national budget plan for the years 2017-2021. The document emphasizes the importance of adhering to legal and procedural standards, including the relevant laws and regulations, such as Federal Law No (1) of 1972 and Federal Law No (8) of 2011, which govern financial planning and budget management in the UAE.
Specifically, the circular covers the following:
- Guidelines for estimating operational and capital expenditures for 2020.
- Procedures for consolidating budget proposals into the unified federal budget.
- Compliance with legal frameworks and directives issued by the Ministry of Finance.
Main Provisions and Financial Guidelines
The circular details the financial thresholds and expenditure limits for the upcoming fiscal year, based on the approved budget plan. It stipulates that the total estimated expenditures for 2020 should not exceed a specified amount, aligning with the overall financial targets set in the federal budget plan for 2019-2021.
Key figures include:
- Total estimated expenditures for 2020: approximately 2.680 billion AED.
- Estimated revenues for 2020: approximately 13.698 billion AED.
These figures are derived from detailed tables that break down the allocations across various federal ministries and entities, ensuring transparency and accountability in budget planning.
Implications for Federal Entities and Budget Preparation Process
Entities are required to prepare their budget proposals in accordance with the directives outlined in this circular, ensuring that their estimates are realistic, justified, and aligned with the strategic priorities of the UAE government. The circular emphasizes the importance of adhering to the deadlines for submission, which is set from the issuance date until December 31, 2019.
Moreover, the circular underscores the necessity for a coordinated approach among ministries and federal agencies to facilitate the consolidation process, which ultimately results in the final federal budget draft for 2020. This process involves rigorous review and validation to ensure compliance with legal standards and fiscal discipline.
Legal and Administrative Context
The circular references the legal basis for budget preparation, highlighting the role of Federal Law No (1) of 1972 concerning the responsibilities of ministries and federal entities, as well as Federal Law No (8) of 2011, which pertains to financial regulations and budget management. These laws provide the legal framework that underpins the directives issued in this circular, ensuring that all procedures are compliant with national legislation.
Furthermore, the circular aligns with the strategic objectives of the UAE’s federal government, emphasizing sustainable development, fiscal responsibility, and efficient resource allocation.
Conclusion: Ensuring a Transparent and Strategic Budgeting Process
The Federal Circular No (10) of 2019 is a vital instrument for maintaining fiscal discipline and strategic planning within the UAE’s federal government. By providing clear guidelines and legal references, it facilitates a structured approach to budget preparation, which is essential for the effective management of public resources and the achievement of national development goals for 2020 and beyond.
