The UAE consolidated government revenues increased to AED304.5 bn during the first nine months of 2018, up 4.8 percent on year, with expenses picking up from AED259.3 bn over the first nine months of 2017 to AED267.2 bn in the corresponding period of 2018, according to figures recently released by the Federal Competitiveness and Statistics Authority.
The increased consolidated government revenues resulted in a surplus of AED 28 bn during the same period, driven by an oil rally during Q2 and Q3 of 2018 along with the consistent financial reforms being adopted and which contributed to diversifying income streams away from oil.
On the government spending level, gross current expenditure grew on annual basis of 4.8 percent during Q3 of 2018. In the meantime, revenue growth declined during Q3 to 2.4 percent on annual basis as a result of a 40.1 percent fall in other streams of revenues to AED29.4 bn from AED49.1 bn during the corresponding period in 2017.
Tax revenues remarkably increased by 66.7 percent as a result of rising crude oil prices and the concomitant impact on government returns.
In addition, consumption of fixed capital picked up 7.5 percent on year in Q3 of 2018 after falling 28.4 percent in the preceding quarter. In the meantime, capital expenditure continued to drop for the sixth straight quarter, falling 9.5 percent on year in Q3 against a fall of 5 percent in the preceding quarter.