Law to ensure transparency in public fund management

abu dhabi — The President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, in his capacity as Ruler of Abu Dhabi, has issued a law concerning the Abu Dhabi Government’s financial system.

The law seeks to set a comprehensive regulatory framework for public financial resources to guarantee that government work is conducted within the institutional framework, with a high level of transparency and accountability in the management of public funds.

It assigns the Department of Finance the responsibility of designing and executing a comprehensive financial system with high economic effectiveness and efficiency, entailing the department preparing the Government’s financial policy and submitting it to the Executive Council for approval.

The law covers budgeting and implementation of the budget, treasury management, regulating the bank accounts of the Government, public entities, institutions and companies, regulating and managing public debt and government bonds, preparing and issuing a financial monitoring system after approval from the Executive Council, issuing a public services pricing guide after approval from the Executive Council, and examining pricing requests from public entities.

It also requires preparing an ownership policy for government institutions and companies, to be approved by the Executive Council, issuing rules and templates for their expected performance statements, and monitoring their financial performance and other government investments.

Furthermore, the law forbids imposing, amending or removing any taxes, unless through legislation, and prohibits exempting all from these taxes, except in the cases stated in the law. No fees may be imposed, amended or removed unless through legislation, Emiri Decree or Executive Council Resolution.

The law has removed all tax and fee exemptions, including exemptions from customs fees that benefit government entities, institutions and companies, affiliated companies, or any other entity, by virtue of a legislation or resolution enforced before this law came into force. — Wam