The consolidated financial account surplus of the UAE government increased to Dh23.5 billion in the first quarter of 2024, equivalent to 24% of total expenditures. This increase was driven by significant growth in government revenues generated from taxes, according to statistical data released by the Ministry of Finance (MoF).
The data revealed that total tax revenues in the UAE’s consolidated government account rose by Dh20.7 billion, representing an increase of approximately 33% during the first quarter of 2024, reaching Dh84.17 billion, compared to Dh63.5 billion in the first quarter of 2023. The UAE began imposing a 9% corporate tax starting January 1, 2024, in addition to the value-added tax (VAT), which has been in effect since January 2018.
The rise in government revenues from indirect taxes is an important indicator of business growth and trade exchange levels in the local market, while the growth in direct tax revenues indicates an increase in net profits of companies operating in the country.
MoF data shows that total revenues in the consolidated government financial account increased by Dh5 billion, or 4.3%, during the first quarter of 2024, reaching Dh120.6 billion, compared to Dh115.6 billion in the first quarter of 2023.
Meanwhile, total expenditures in the consolidated government financial account remained stable at around Dh91.5 billion during the first quarter of 2024, with a slight decrease compared to Dh91.7 billion in the first quarter of 2023.
The data also shows that net government investments in non-financial assets increased nearly sevenfold, reaching Dh5.6 billion in the first quarter of 2024, compared to Dh0.77 billion in the first quarter of 2023.
Despite the significant increase in net government investments in non-financial assets, the surplus in the UAE’s consolidated government financial account reached Dh23.5 billion, exceeding 24% of total expenditures. This is higher than the surplus of Dh23.1 billion achieved in the consolidated account in the first quarter of 2023, although that surplus represented approximately 25% of total expenditures.
Aletihad
