The UAE government’s net operating surplus more than doubled to 36.4 billion dirhams ($ 9.9 billion) in the first quarter as oil prices rose to support public revenues, according to data released by the Ministry of Finance on Monday.
This year’s high oil prices and increased output have benefited the country’s economy, which is still recovering from the repercussions of the Covid-19 pandemic.
The UAE’s net operating surplus increased by 128.7 percent from 15.9 billion dirhams in the first quarter of last year.
Government spending in the UAE increased by 19.6 percent, or 14.34 billion dirhams, in the first quarter of this year, to 87.4 billion dirhams, up from 73.7 billion dirhams in the same period last year 2021.
According to the Ministry, government spending at the state level included approximately 28.7 billion dirhams in worker compensation in the first quarter of this year, compared to approximately 24.6 billion dirhams in the same period in 2021, representing a 16.6 percent increase, or the equivalent of 4.1 billion dirhams.
The government spent approximately 30.9 billion dirhams on goods and services, 14.1 billion dirhams on social benefits, 6.4 billion dirhams on financial subsidies, and 1.7 billion dirhams on interest. Moreover, it allocated 1.6 billion dirhams for fixed capital consumption, 304 million dirhams for grants, and 3.8 billion dirhams for other expenses.
Revenues amounted to 123.8 billion dirhams in the first quarter of this year, up 39.1 percent, or 34.8 billion dirhams, from 88.9 billion dirhams in the same period last year.
Revenues from taxes on companies extracting oil and natural gas, banks operating in the state, customs fees, and other fees totaled 56.7 billion dirhams in the first quarter of this year. Meanwhile, social contributions totaled 4.9 billion dirhams, and other revenues contributed 62.2 billion dirhams.