Introduction
Budgets are commonplace in many private sector companies in the UAE, and in a greater sense, around the world. They allow for the companies to ensure they are on top of their finances, which can lead to an easier time in monitoring and providing a transparent system. Further to this, budgets also make sure that entities are prepared for the period of their duration, as annual budgets will allow for careful consideration for the coming year from a monetary standpoint.
However, in the UAE, there has been far less of a stringent budgeting requirement on government entities. The simple point of this relates to the fact that a reason for it just hasn't arisen. The Sharjah government has recently seen though that it may be an excellent addition to make regulations on the matter. Up until this point, budgets have indeed existed, though, with the interconnected nature of the government entities, a provision in place would be of great value.
Law Number 11 of 2018
Sharjah has recently implemented this Law Number 11 of 2018 concerning budgeting in the public sector. The first budgeting under this regulation will be for the upcoming year of 2019, and all of the public sector entities will be required to comply for their annual budget.
The Sharjah Executive Council will be in charge of managing and ensuring all entities follow their budgets, and as per the law, should a body run across additional expenditure that is not a part of their budget, they will have to take it up with the council, with them having the final say.
The law will commence from January 1 of 2019, and the initial budget should cover from this point till December 31 of the same year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.