The UAE’s federal government is planning to bolster its 2022 federal budget spending by a further Dh1.23 billion ($334.9 million), according to the Federal National Council (FNC).

The hike in spending will stem from the federal government’s general reserves, the FNC added, stating the UAE’s revenue in 2022 was forecast to rise by around Dh374.9 million.

Last October, Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid approved the 2022 UAE budget, with total spending of Dh58.93 billion, The National reports.

The lion’s share of the budget, 41.2%, was earmarked for the development and social benefits sector, including 16.3% for education, 8.4% for health, 8.2% for pensions, 6% for social development, and 2.6% for other services.

In addition, around 3.8% of the budget was allocated to infrastructure and financial resources.

A five-year federal budget was also unveiled in 2021, featuring total spending of Dh290 billion until 2026. At the time, Sheikh Mohammed said: “We enter the new federal 50th with confidence, optimism and global aspirations.”

The UAE’s economy has made a robust rebound from the pandemic, and is forecast to grow by 5.4% in 2022, according to the central bank.

The real GDP growth estimate for this year is higher than the 4.2% forecast made in April by the central bank.

Overall GDP growth will be backed by an 8% rise in the UAE’s oil economy this year, which is forecast to expand by another 5% in 2023 due to elevated crude prices. The non-oil economy will grow 4.3% this year following 5.3% growth in 2021, as per the central bank data, with growth predicted to edge down to 3.9% next year.

The International Monetary Fund forecasts the UAE economy will grow 4.2% in 2022.