week 9 ( the Report )

In this week we have to answer question about report which Mr. Mark give us

1.       What is the draft Federal Budget for 2012 for the UAE in US$?

                                                                             

$11.4 billion

2.       How does this compare with the 2011 budget?

2011 budget was $11.2 billion (41 billion dirham) is higher than the previous year budget by 0.2 billion USD (0.8 billion Dirham’s),

3.       Will projected revenues cover projected expenditures in 2012? Explain your answer.

The projected spending or expenditure is expected to be 41.8 billion dirham and the projected revenue is 41.4 billion dirham, therefore the revenue will not cover the expenditure.

4.       What are the spending priorities in the UAE next year?

Health, Education and Social Services

5.       According to the article, how does the UAE rank as an oil exporter and Arab economy?

It’s the second after Saudi Arabia.  

6.       Are oil receipts included in the Federal Budget?

Oil receipts are not directly included in the federal budget but grants from Abu Dhabi.

7.       If oil prices rise, which Emirate will have ‘space to spend more if needed?’

Abu Dhabi

8.       According to the article, which macroeconomic policy is a key tool for the UAE economy?

Fiscal policy

9.       What are the key components of Fiscal Policy?

Government spending, Taxation, Revenue and Borrowing.   

10.      Why is Monetary Policy of smaller importance to the UAE?

Because the Monetary Policy in good situation in the UAE

11.   Identify problems that the UAE faces in implementing both Fiscal and Monetary Policy.

The huge amount of Dubai debts and the dollar peg is one of the problems particularly that the dollar began to lose its value during the last decade.