Overview and Purpose of the Circular
The Financial Circular No (1) of 2017 issued by the Federal Ministry of Finance of the United Arab Emirates (UAE) serves as a comprehensive guideline for the preparation of the Federal Public Budget Draft for the fiscal year 2018. This circular is part of a broader strategic framework that spans from 2017 to 2021, aiming to ensure a structured, transparent, and efficient budget planning process across all federal ministries and independent federal entities.
Scope and Target Audience
This circular primarily targets all federal ministries and independent federal entities responsible for drafting their respective budget proposals. It provides detailed instructions and legal references to ensure compliance with the UAE’s financial regulations and strategic objectives. The document underscores the importance of adhering to the established legal and procedural frameworks, including the directives issued by the Council of Ministers and relevant legislative decrees.
Key Points and Strategic Framework
The circular emphasizes the importance of aligning the budget preparation process with the UAE’s broader economic and development strategies. It references several key legislative and regulatory instruments, including:
- The Federal Budget Law (Law No. 13 of 2011), which sets the foundational rules for budget preparation and execution.
- The Decree No. 28 of 2016, which outlines the formation of the UAE’s federal government and the responsibilities of the Ministry of Finance in budget oversight.
- The Decree No. 29 of 2016, defining the roles and responsibilities of the federal ministries and entities in financial planning.
- The Council of Ministers’ Resolution No. 168 of 2015, which establishes the procedures for the annual budget planning cycle.
- The Resolution No. 47 of 2016, detailing the strategic and operational guidelines for federal budget planning for the years 2017-2021.
The circular underscores the necessity of integrating strategic objectives with financial planning, emphasizing transparency, accountability, and efficiency in resource allocation.
Procedural and Legal References
The circular provides a detailed legal basis for the budget drafting process, citing specific laws, decrees, and resolutions that govern the financial management of federal entities. Notably, it references:
- The Legal Framework for Federal Budget Preparation, including the legal provisions that mandate the preparation of the budget in accordance with strategic priorities.
- The Legal Obligations of Federal Entities, including the requirement to submit budget proposals aligned with the strategic plan and within specified deadlines.
- Procedural guidelines for the submission, review, and approval of budget drafts, ensuring adherence to the legal and strategic standards set forth by the UAE government.
This legal framework ensures that all federal entities operate within a unified system that promotes fiscal discipline and strategic alignment.
Implementation and Follow-up
The circular stresses the importance of a coordinated approach to budget preparation, involving multiple stages including planning, review, and approval. It mandates adherence to the timelines specified in the strategic planning documents and emphasizes the role of the Ministry of Finance in overseeing compliance and consolidating the federal budget draft.
Furthermore, the circular encourages federal entities to leverage digital tools and platforms, such as the UAE’s electronic government systems, to streamline the budget drafting and submission process, thereby enhancing efficiency and transparency.
Conclusion
Overall, Financial Circular No (1) of 2017 provides a detailed roadmap for federal entities to prepare their budget proposals for FY 2018, aligned with the strategic objectives of the UAE’s federal government. It underscores the importance of legal compliance, strategic alignment, and digital integration in achieving a transparent, accountable, and efficient budget process that supports the UAE’s broader economic development goals for 2017-2021.
