Tuesday, Mar 15, 2016

Dubai: In his capacity as Ruler of Dubai, Vice President and Prime Minister of the United Arab Emirates His Highness Shaikh Mohammed bin Rashid Al Maktoum issued a Law on Dubai Government Financial Regulation with an aim to improve the management of public capital and government budgets in addition to further enhancing control of the revenues, expenses and assets

The new Law regulates the tabulation and approval of financial statements and closing accounts, financial and audit policies and procedures, financial governance KPIs, principles of financial records and improvement of financial risk management, the Dubai Media Office said in an emailed statement.

The new law is applicable to all government entities listed in the general budget, government entities with independent budgets and entities that receive financial support from the government. The law names the entities subject to its articles and the responsibilities and authorities of the supreme committee of fiscal policy and Dubai’s department of finance.

The law outlines the authorities and responsibilities of the Supreme Committee of Fiscal Policy that include revising and approving the Dubai Government’s financial policy prior to submission to the Executive Council for approval; revising and approving Dubai’s general budget and budgets of subsidy-dependent entities prior to submission to His Highness the Ruler, or whomever he delegates for final approval; approving the budgets of entities that have independent budgets based on the recommendation of Dubai’s Department of Finance; approving regulations governing public debt management; and approving financial instruments for government budget balance based on the Department of Finance’s recommendations.

The Law also details the authorities and responsibilities of the Dubai Department of Finance that include the preparation of the Dubai Government’s financial policy based on the emirate’s approved strategic objectives; preparation of general and supplementary budgets; preparation of medium-term financial strategy in collaboration with the concerned government departments; following up on the implementation of approved general and supplementary budgets; and the development of plans to secure cash flow and allocate approved funds.

The law outlines the rules and regulations governing the general budget and auditing of government entities under the purview of this law. According to the law, government entities may not pay any grants, donations or gifts to any entity beyond the approved allocated budget. Government entities and its employees may also not receive any grants, donations or gifts from any entity without obtaining prior approval from the concerned authorities.

The law promotes transparency as it obligates the Dubai Department of Finance to circulate the objectives of the government’s financial policies and procedures, publish the general budget’s key performance indicators and announce any changes in auditing procedures.

Staff Report

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