The Ministry of Finance examines the consolidated annual report of the federation and the final accounts of the independent entities for the year ended 31/12/2020

The Ministry of Finance examines the consolidated annual report of the federation and the final accounts of the independent entities for the year ended 31/12/2020

The Ministry of Finance (MoF) has announced the results of the draft Federal Entities Final Accounts and Independent Entities Final Accounts for the year ending 31 December 2020. The announcement was made at the third Council meeting Federal National (FNC). meeting, which took place at the FNC headquarters in Abu Dhabi.

The FNC approved the consolidated annual report of the federation and the final accounts of the independent entities for the year ended December 31, 2020, during its third ordinary session of the 17th legislative chapter. The session took place on January 11, 2022 at the FNC headquarters in Abu Dhabi and was chaired by His Excellency Saqr Ghobash, Chairman of the FNC. His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs; Her Excellency Mariam Mohamed Al Amiri, Deputy Assistant Secretary for General Financial Management; as well as specialists from the Ministry of Finance attended the meeting.

During the session, His Excellency Mohamed Bin Hadi Al Hussaini previewed the Consolidated Annual Report 2020, which included a summary of data collected, and the Consolidated Statement of Financial Performance, Current Assets and Liabilities , in addition to the efforts of the Department of Finance in developing the consolidated financial performance of the federal government.

His Excellency Al Hussaini said, “The Ministry of Finance is committed to providing clear financial data in line with international best practices. This data reiterates the country’s financial situation and helps policymakers make informed decisions to distribute financial resources and preserve public funds, as well as design financial policies that improve the financial situation of the Union.”

His Excellency added, “The initiatives and various financial stimulus packages endorsed by the Government of the United Arab Emirates have helped to mitigate the impact of the COVID-19 pandemic on those residing in the United Arab Emirates; and have contributed to accelerating the pace of economic recovery to near pre-pandemic levels.”

Based on the results of the 2020 Consolidated Final Report, 32.0% of revenue came from the United Arab Emirates, 15.5% from taxes and 52.5% from other sources. Expenses were split between employee compensation at 40.4%, product and service requirements at 31.0%, and other expenses at 28.6%.

The Consolidated Statement of Financial Performance noted that the revenue execution rate stood at 82.6% including taxes, payroll taxes and other federal contributions and revenues. The expenditure execution rate stood at 85.2% and included compensation of citizens, supplies of goods and services, subsidies, donations, social benefits, other expenditures and assets with financial appropriations .

In 2020, the UAE government had directed financial resources to safeguard the health and safety of community members. The Government of the United Arab Emirates has launched various initiatives and stimulus packages to mitigate the impact of the COVID-19 pandemic and support the health sector, SMEs and individuals, which has helped ensure financial stability and the business continuity in vital sectors.

The consolidated annual report is an annual report drawn up with the approval of the consolidated annual accounts of the federal authorities. The Ministry of Finance prepares it on the basis of the final financial statements submitted by the federal authorities and includes the consolidated financial statements, which are: the consolidated statement of financial performance, the consolidated statement of financial position, the cash and the explanatory note.​

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