UAE Government Annual Meetings adopt four initiatives to promote spending efficiency
H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, stressed the crucial role of the UAE Government Annual Meetings in setting the roadmap for achieving the UAE’s development goals and building on its achievements.
The UAE Government adopted four initiatives to enhance the efficiency of public spending, optimise the use of financial resources in vital sectors, and achieve integration between federal and local entities to streamline the government fees system and promote economic stability.
His Highness said, "The Annual Meetings represent a proactive step taken by the wise leadership as part of its efforts to shape the future through engaging all federal and local entities in the national dialogue on key issues and strategies that achieve the vision of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Their Highnesses, the Supreme Council Members and the Rulers of the Emirates. The Annual Meetings also drive growth and development in order to ensure a sustainable prosperous future for the UAE."
"The Ministry of Finance is committed to collaboration with all government entities to turn the outcomes of the Annual Meeting into leading projects and initiatives that boost the financial sector and support setting medium and long-term development plans in order to achieve the UAE 2021 Vision and the UAE Centennial 2071," Sheikh Hamdan bin Rashid continued.
The UAE government endeavours to support public finances and develop processes and systems related to financial affairs in the UAE using creative and realistic solutions, linking the financial systems of the federal and local government entities, and enhancing coordination between fiscal and monetary policies in the UAE. It also seeks to provide forecasts to help develop the best strategic plans that would ensure government spending efficiency.
Enhancing Allocation of Financial Resources The initiative aims to enhance the government sector spending efficiency by promoting efficient and effective use of financial resources. This is achieved by channeling spending into priority areas (such as health and education) that would be of benefit to the national economy; and reducing spending on non-priority areas. It can further be enhanced by reviewing policies and laws related to the initiative, organising coordination workshops with relevant stakeholders and preparing a draft guide book to enhance public spending efficiency and adopt its usage in preparing hospitals budget.
Streamlining the Common Fees System The second phase of the initiative designed to streamline the common fees collection system among federal and local government entities involves activating the strategy stipulated by the guidebook, strengthening the role of the federal and local entities joint committee, standardising procedures, reviewing common fees and adopting the regulatory framework for agreements related to streamlining fees. This would be achieved by drafting a resolution to form the committee and submitting a draft resolution to the Cabinet for approving the guide and developing a plan to implement it, as well as organising the technical team meetings and providing relevant updates.
Financial and Monetary Policy Coordination The coordination between financial and monetary policies initiative involves the formation of a technical committee that includes representatives from the Ministry of Finance and other financial departments across the UAE, as well as representatives from the Central Bank. The committee would meet periodically, to review and analyse the available data, follow up on the progress achieved and assess compliance with the guidelines. The committee would also develop the necessary guidelines to ensure coordination between the financial and monetary policies; organise a workshop to coordinate with relevant stakeholders, and adopt an action plan to provide data.
Moreover, the initiative aims to provide economic forecasts, establish a periodic coordination meetings schedule, submit recommendations to the relevant entities and to the high committee to increase coordination, and set up an annual programme to review economic data and forecasts.
National Project for Financial Risks Management The national project for financial risks control and management relies on implementing the appropriate financial policies, avoiding various risks, enhancing the resilience of public finance, identifying the various types of financial risks, and taking them into consideration while formulating objectives to ensure they do not compromise economic stability.
The project is implemented by identifying the scope and sources of financial risks, providing advice on the mechanisms to enhance risk reporting, monitoring and management (risk register), developing guidelines for financial risk analysis and management (risk guide), as well as designing and operating financial stress tests.