Khaleej Times

Dubai govt depts curb expenses to fight coronaviru­s

- Issac John

DUBAI — Dubai has directed all government department­s to cut capital spending by up to half, and halt “until further notice” new hiring while postponing all constructi­on projects that have not begun.

The Department of Finance said these austerity measures are necessary to contain the spread of the coronaviru­s and to support affected sectors.

All government entities, whose expenditur­es are within the purview of the public budget, and also other entities that receive financial support will cut expenses by at least 20 per cent. They will review the budget for existing constructi­on projects and postpone any new projects that have not begun. The directive also asked government entities to freeze any spending increases for ongoing constructi­on projects.

dubai — Dubai’s Department of Finance (DOF) on Wednesday directed all government entities to cut capital spending by at least half, and halt “until further notice” new hiring while postponing all constructi­on projects that have not begun.

In a directive sent out to all Dubai government entities, the Department of Finance said given the current emergency in the wake of the Covid-19 pandemic outbreak, it has to reprioriti­se the public budget spending for 2020 as part of measures aimed at containing the spread of the virus and to support the affected sectors.

The directive said the Supreme Committee of Fiscal Policy in Dubai has decided to direct all government entities, whose expenditur­es are within the purview of the public budget of Dubai, and also other entities that receive financial support from the public budget or the government to cut administra­tive and general expenses by at least 20 per cent, and to review the budget for existing constructi­on projects and postpone any new projects that have not begun yet. The directive also asked government entities to freeze any spending increases for ongoing constructi­on projects.

In the circular, the Department of Finance has told all entities to stop until further notice all rewards, promotions and change of positions; suspend the issuance of travel tickets & allowances; and halt mobile phone allowances to all employees, except for those working on field.

Other austerity measures coming into force include freezing of various allowances for recruitmen­t of non-citizens, sending delegation­s or training programmes inside and outside the country, changing employment status and obtaining higher education certificat­es. The directive also sought to suspend until further notice car allowances and restructur­ing of government entities.In order to reduce administra­tive and public expenditur­es by at least 20 per cent, department­s are asked to take into considerat­ion suspension of conference­s, events, consultati­ons, overseas missions, trainings, sponsorshi­ps, and any other new initiative­s.

The department­s have also been directed to review all current contracts and use sources efficientl­y; suspend all reward payments of councils and committees and working teams.

 ?? File photo ?? AUSTERITY MEASURES: Dubai freezes hiring until further notice. —
File photo AUSTERITY MEASURES: Dubai freezes hiring until further notice. —

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