Overview of the Federal General Budget Circular No (6) of 2024
The Federal General Budget Circular No (6) of 2024 is a significant official document issued by the Ministry of Finance of the United Arab Emirates (UAE). It pertains to the process of updating the draft of the federal public budget for the fiscal year 2025, which is included within the broader budget plan for the years 2022-2026. This circular plays a crucial role in ensuring the transparency, accuracy, and strategic alignment of the UAE’s fiscal planning, especially as it relates to the federal budget’s preparation and approval stages.
Context and Scope of the Circular
This circular is issued in the context of the UAE’s constitutional framework—established by the UAE Constitution and the federal laws governing financial management and public expenditure. It aligns with the directives of the Council of Ministers and the regulatory framework set by the Ministry of Finance, particularly Law No (26) of 2019, Law No (12) of 2023, and Law No (1) of 2024. The circular emphasizes the importance of adhering to the legal and procedural standards for budget preparation, including the integration of updated financial estimates and expenditure forecasts for the upcoming fiscal year.
Moreover, the circular underscores the digitalization efforts of the UAE’s financial management system, requiring all budget-related submissions and updates to be processed through the official electronic channels provided by the Ministry of Finance, ensuring efficiency and transparency in compliance with the UAE’s strategic digital government initiatives.
Who Is Affected by This Circular?
The circular primarily targets all federal entities and ministries involved in the preparation and submission of the federal public budget. It also involves the financial departments responsible for drafting, reviewing, and approving budget estimates. Additionally, it impacts the offices responsible for strategic planning and financial oversight within the federal government, ensuring that all stakeholders align their budgetary inputs with the updated directives and standards outlined in this circular.
Furthermore, the circular indirectly influences the entities involved in implementing federal projects and initiatives planned for 2025, as their budget allocations are subject to the updated draft and subsequent approvals.
Key Points and Requirements of the Circular
- Updating the Draft Budget: The circular mandates the revision and updating of the federal public budget draft for 2025, incorporating the latest financial data, expenditure estimates, and strategic priorities aligned with the budget plan for 2022-2026.
- Financial Estimates and Allocations: All federal entities must prepare preliminary estimates of their financial requirements, including revenues, expenditures, and capital projects, in accordance with the standards and regulations specified in the circular.
- Digital Submission: The updated budget proposals and supporting documents are to be submitted exclusively through the official electronic platforms provided by the Ministry of Finance, ensuring a streamlined review process.
- Coordination and Compliance: Entities are required to coordinate with the Ministry of Finance to ensure their submissions are in line with the strategic objectives and fiscal policies of the UAE, including adherence to the fiscal deficit targets and efficiency indicators.
- Timeline and Deadlines: The circular specifies the deadlines for submission and review of the updated draft, emphasizing the importance of timely compliance to facilitate the final approval process by the Council of Ministers.
References and Official Sources
This circular is issued under the legal authority of Law No (26) of 2019 concerning the federal budget, Law No (12) of 2023 regulating financial management in the public sector, and Law No (1) of 2024 related to budget procedures. It also aligns with the decisions of the Council of Ministers, notably Decision No 48 of 2023, which guides the implementation of federal budget procedures.
The document emphasizes the importance of digital platforms managed by the Ministry of Finance and other federal entities to ensure transparency, accuracy, and efficiency in the budget preparation process. All updates and submissions should be made via the official UAE government portals, including the Ministry of Finance’s electronic services platform and the UAE Portal (u.ae).
Conclusion
The issuance of Circular No (6) of 2024 reflects the UAE’s commitment to modernizing its fiscal management system and ensuring disciplined, transparent, and strategic budget planning for the upcoming fiscal year 2025. Federal entities are encouraged to adhere strictly to the guidelines and deadlines outlined in this circular to facilitate a smooth and effective budget update process, supporting the country’s broader economic and development objectives for the coming years.
