The International Monetary Fund expected that the level of government spending for the United Arab Emirates will rise this year by a difference of 5.3 percent of GDP from its level last year, to 35.9 percent of GDP, while government spending last year reached about 30.6 percent of GDP.
The IMF estimated that government spending will reach 33 percent of GDP next year, and that it will continue to decline relatively to 29.3 percent of GDP by 2025. The fund estimated that government revenues this year will reach 26 percent of GDP this year, compared to 29.8 percent last year, with expectations that government revenues will grow in the coming years, reaching 28 percent of GDP in 2021, and amounting to 27.1 percent of GDP by 2025.
According to the Fund's estimates, the rise in the government debt of the UAE is expected to remain limited despite the consequences of the "Corona" pandemic, which imposes more spending and the need for liquidity to finance the deficit. The report expects government debt this year to reach 36.9 percent of GDP, compared to 27.3 percent in 2019.
Source (Al Khaleej Newspaper-UAE, Edited)
