UAE ranked 7th on Government Spending Efficiency by WEF
The UAE has been ranked seventh in the world in terms of efficiency of government spending, according to the 2010-2011 Global Competitiveness Report of the World Economic Forum. Of the 139 countries covered by the report, UAE has been ranked in top 10 in efficiency of government spending for the second consecutive time.
The report commended the UAE’s ability to enhance the efficiency of its government spending and transparency, two essential elements that determine competitiveness of countries. A series of initiatives and improvements aimed at securing optimum use of resources in vital and sustainable sectors exemplified the UAE’s leadership’s vision and strategy to secure the country’s prosperity.
According to the report, the 2011-2013 zero-based budget initiative of the UAE government was most prominent in increasing efficiency of government spending. It enhances efficiency of government spending and preserves public money by clearly determining activity and program costs, outcomes and objectives. Zero-based budgets assign departments to develop fresh new budgets every three years, not limited to increase in spending and include all items of expenditure.
HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and the Minister of Finance, referred this global achievement to the wise leadership of HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, and HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister, Ruler of Dubai.
Sheikh Hamdan stressed the importance of implementing the UAE leadership’s vision and its commitment to support development and economic stability. He outlined the need to provide better levels of government services and secure the welfare and prosperity of UAE citizens.
Obaid Humaid Al Tayer, Minister of State for Financial Affairs, said: "That international organizations have recognized our competitiveness and achievements on a global level is a clear sign of appreciation for the UAE’s efforts in increasing government efficiencies." The continuous efforts made of the Ministry of Finance (MoF) in the development of the public finance system and preparing the general budget of the federal government have culminated in the improvements in the federal government budget. Presenting the 2011 budget in the zero-based budgeting system enabled federal bodies to link operational goals with strategic objectives of the government to meet the needs of society.
During the last ten-months, reform programs have been implemented within the framework of partnership between MoF, concerned ministries and other federal agencies.
According to the standard classification adopted by the Organization for Economic Cooperation and Development (OECD), Zero - based budgeting system is one of the best governmental practices in public finances and general budgeting of governments. Ministries and federal agencies prepare their draft budgets by the curriculum plan that begins by defining activities meant to achieve strategic objectives and then calculating the cost of activities. It secures the efficiency of performance and gains maximum positive returns on government spending.
The UAE government is pleased that it has achieved several significant accomplishments, surpassing the standards recognized and proclaimed by OECD countries.
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