Understanding Federal Law No (1) of 2023 on Linking the Federal General Budget for the Fiscal Year 2023
Context and Purpose
Federal Law No (1) of 2023, issued by the Federal Authority of the United Arab Emirates, establishes the framework for the allocation and management of the federal general budget for the fiscal year 2023. This legislation is part of the UAE's ongoing efforts to enhance fiscal transparency, streamline budgetary procedures, and ensure efficient use of public funds in accordance with the UAE Constitution and applicable financial laws.
The law consolidates the financial planning and expenditure management of various federal entities, providing a legal basis for the allocation of revenues and expenditures, and setting the financial priorities for the year 2023. It reflects the UAE's commitment to maintaining fiscal discipline while supporting the country's developmental and social objectives.
Scope and Key Provisions
The law specifies the total federal revenues estimated at approximately 63.613 trillion AED and the total expenditures projected at around 63.066 trillion AED for the fiscal year 2023. These figures are based on the official data submitted by the relevant authorities and are aligned with the UAE's broader economic strategies.
Among the most significant allocations are:
- Public services and government operations, with expenditures estimated at approximately 220.04 million AED.
- Education sector, with a budget of about 5.166 billion AED.
- Health and social development, allocated roughly 4.269 billion AED.
- Defense and security, with a dedicated budget of 955.085 million AED.
Additional allocations cover infrastructure projects, social welfare programs, and strategic initiatives aimed at fostering sustainable growth and social stability across the Emirates.
Legal and Administrative Framework
The law emphasizes adherence to the legal provisions related to fiscal management, including the principles of transparency, accountability, and efficiency. It mandates the integration of budget planning with the national development plans and requires federal entities to align their financial activities with the directives issued by the Ministry of Finance and other relevant authorities.
Furthermore, the law provides mechanisms for monitoring and controlling expenditures, including the use of electronic systems and digital platforms to ensure real-time oversight and reporting. This aligns with the UAE's digital transformation strategy, promoting e-government services and reducing bureaucratic procedures.
It also stipulates that the budget implementation must respect the limits set by the law, with any deviations subject to approval by the competent authorities and in accordance with the established legal procedures.
Implications for Federal Entities and the Public
Federal ministries, authorities, and institutions are required to prepare their financial plans in accordance with the allocations specified in the law and to submit their reports on budget execution as per the schedule set by the Ministry of Finance. This ensures a unified and transparent approach to public financial management.
For the public and stakeholders, this law reinforces the government's commitment to responsible fiscal governance, transparency in public spending, and the continuous development of public services. It also provides a clear legal basis for the oversight and evaluation of federal financial activities throughout the year 2023.
References and Official Sources
The law is officially documented and accessible through the UAE official government portals, specifically the Federal Authority of the UAE and the Ministry of Finance. These platforms provide detailed reports, legal texts, and updates related to the implementation and any amendments to the law.
It is essential for all federal entities and relevant stakeholders to stay informed of the provisions of this law to ensure compliance and effective management of public resources for the benefit of the UAE’s sustainable development goals.
