Dubai govt depts curb expenses to fight coronavirus
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.