Legislation Details
- Full Title: Federal Decree Law Regarding Public Finance
- Law Type: Federal Decree
- Law Number: [no number] of 2019
- Issued Date: 05 Sep 2019
- Effective Date: 16 Sep 2019
- Official Gazette: No. 662
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 192
- Chapters/Parts: 0
- Amendments: 1
Summary
The Federal Decree Law Regarding Public Finance establishes an integrated regulatory framework for the management of financial resources and policies of federal entities in the United Arab Emirates. It defines the principles, rules, and responsibilities for collecting, managing, and disbursing financial resources, as well as the governance, control, and risk management mechanisms related to financial resource management. The law aims to enhance transparency, accountability, and efficiency in the federal government's financial operations. (Federal Decree Law Regarding Public Finance, 2019, Art. 1-3)
This law is significant for businesses and individuals in the UAE as it sets the financial rules and procedures that federal entities must follow. It impacts areas such as budgeting, revenue collection, expenditure controls, and financial reporting. Understanding this legislation is crucial for companies and individuals who interact with or are affected by the federal government's financial management practices. (Federal Decree Law Regarding Public Finance, 2019, Art. 1-3)
What is the scope and purpose of this law?
The scope of the Federal Decree Law Regarding Public Finance applies to the federal government of the United Arab Emirates, including all ministries, federal government bodies and authorities, and independent federal entities. The law's primary objectives are to determine the rules for preparing the general budget and final accounts of federal entities, as well as to establish an integrated regulatory framework for the management of financial resources and policies of federal entities. This includes defining the principles, rules, powers, competencies, and responsibilities related to the collection, management, and disbursement of financial resources. (Federal Decree Law Regarding Public Finance, 2019, Art. 2-3)
What are the key definitions under this law?
- State: United Arab Emirates (UAE)
- Government: The Federal Government of the State
- Ministry: The Ministry of Finance
- Minister: The Minister of Finance
- Bank: The Central Bank of the United Arab Emirates
- Federal Entities: The ministries, federal government bodies and authorities
- Independent Federal Entities: Entities established according to applicable legislation
- Governmental Companies: Establishments and companies owned wholly or partially by the federal government or federal entities
- Fiscal Year: Twelve Gregorian months, starting January 1 and ending December 31
- General State Budget Law: The federal law issued each fiscal year adopting the relevant general budget
- General Budget: The government budget adopted by federal law, including estimated revenues and expenditures
- Supplementary Budget: Additional financial appropriations issued by federal law to cover new policies not listed in the general budget
- Consolidated Chart of Accounts: A consolidated classification adopted by the Cabinet for accounts used in federal entities
- Medium-Term: The financial plan approved by the Cabinet for not less than five years
- Programmes: Activities and services offered by federal entities to achieve strategic objectives
- Capital Projects: Projects for establishing, possessing, or renewing assets owned by federal entities
- Unified Treasury Account: The government's central account where all federal entities' financial revenues are deposited
- Trust money: Third-party funds deposited in government or federal entity bank accounts
- Financial Appropriations: The binding maximum ceilings of expenditure categories approved in the General State Budget Law
- Federal Entity Final Account: The annual report prepared by each federal entity
- Consolidated Final Account: The annual report including the consolidated financial statements of federal entities
- Approved Accounting Standards: The accounting principles and standards applied in the federal government
- Contingent Expenses: Estimated financial amounts to address unforeseen circumstances
- General Revenues: The resources of the federal government from various sources
- Government Guarantee: An undertaking by the government to settle the liabilities of a federal entity
- Cash Reserve: An account financed by actual cash surplus
- Special Reserve: A financial appropriation estimated annually to finance contingent expenses
(Federal Decree Law Regarding Public Finance, 2019, Art. 1)
What are the main obligations and requirements?
The Federal Decree Law Regarding Public Finance imposes several key obligations on federal entities and their employees, including:
- Adhering to the rules, systems, and operations of the general financial management framework established by the law, Cabinet resolutions, and ministerial decisions (Federal Decree Law Regarding Public Finance, 2019, Art. 10-11)
- Submitting their draft budgets and final accounts to the Ministry of Finance within the specified timelines (Federal Decree Law Regarding Public Finance, 2019, Art. 14, 66-68)
- Complying with the financial appropriations and expenditure controls set forth in the law (Federal Decree Law Regarding Public Finance, 2019, Art. 43-52)
- Maintaining proper records, accounts, and financial reports as per the approved accounting standards (Federal Decree Law Regarding Public Finance, 2019, Art. 53-54)
- Cooperating with the control and internal auditing processes established under the law (Federal Decree Law Regarding Public Finance, 2019, Art. 55-56)
What licensing, registration, or approval requirements exist?
The Federal Decree Law Regarding Public Finance does not specify any licensing, registration, or approval requirements for individuals or companies. The law primarily focuses on the financial management obligations and procedures for federal entities within the UAE government. (Federal Decree Law Regarding Public Finance, 2019)
What rights and protections does this law provide?
The Federal Decree Law Regarding Public Finance does not explicitly outline any specific rights or protections for individuals or businesses. The law is primarily focused on establishing the regulatory framework for the management of financial resources and policies of federal entities in the UAE. (Federal Decree Law Regarding Public Finance, 2019)
Which authorities or bodies are responsible for enforcement?
The Federal Decree Law Regarding Public Finance designates the following authorities and bodies as responsible for the enforcement and governance of financial management in the federal government:
- The Cabinet: Exercises powers related to the general budget, medium-term budget framework, and financial policies (Federal Decree Law Regarding Public Finance, 2019, Art. 4)
- The Minister of Finance: Oversees the preparation of the draft general budget, issues financial circulars, and manages the consolidated final account (Federal Decree Law Regarding Public Finance, 2019, Art. 5-6, 66)
- The Ministry of Finance: Responsible for the competencies related to the general financial management framework (Federal Decree Law Regarding Public Finance, 2019, Art. 6)
- The Accounting Standards Board: Develops the approved accounting standards for the federal government (Federal Decree Law Regarding Public Finance, 2019, Art. 42)
- The State Audit Institution: Responsible for the control and internal auditing of federal entities' financial management (Federal Decree Law Regarding Public Finance, 2019, Art. 55)
What are the penalties for non-compliance?
The Federal Decree Law Regarding Public Finance does not specify any penalties for non-compliance. The law focuses on establishing the regulatory framework and obligations for financial management in the federal government, but does not outline any enforcement mechanisms or sanctions. (Federal Decree Law Regarding Public Finance, 2019)
What fees, charges, or financial provisions are specified?
The Federal Decree Law Regarding Public Finance does not provide details on any specific fees, charges, or financial provisions. The law is primarily concerned with the overall framework for managing financial resources and policies of federal entities, rather than outlining detailed financial requirements. (Federal Decree Law Regarding Public Finance, 2019)
What exemptions or exceptions apply?
The Federal Decree Law Regarding Public Finance does not mention any exemptions or exceptions from its scope or requirements. The law applies broadly to the federal government, including all ministries, federal government bodies and authorities, and independent federal entities. (Federal Decree Law Regarding Public Finance, 2019)
How are disputes resolved under this law?
The Federal Decree Law Regarding Public Finance does not specify any dispute resolution mechanisms or procedures. The law does not outline how any potential conflicts or disagreements related to its implementation would be addressed. (Federal Decree Law Regarding Public Finance, 2019)
What are the key deadlines and time limits?
The Federal Decree Law Regarding Public Finance establishes the following key deadlines and time limits:
- Federal entities must submit their draft budgets to the Ministry of Finance within the timeline specified in the annual financial circular (Federal Decree Law Regarding Public Finance, 2019, Art. 14)
- Federal entities must submit their final accounts to the Ministry of Finance within the timeline specified in the annual financial circular (Federal Decree Law Regarding Public Finance, 2019, Art. 66-67)
- The Ministry of Finance must prepare the draft consolidated final account within a specified timeline after receiving the federal entities' final accounts (Federal Decree Law Regarding Public Finance, 2019, Art. 69)
How does this law interact with other UAE legislation?
The Federal Decree Law Regarding Public Finance references and interacts with several other UAE federal laws and decrees, including:
- Federal Law No. (1) of 1972 on the Competences of Ministries and Powers of Ministers
- Federal Law No. (1) of 2011 concerning Public Revenues of the State
- Federal Law No. (8) of 2011 on the Reorganization of State Audit Institution
- Federal Decree Law No. (9) of 2018 on Public Debt
- Federal Decree Law No. (15) of 2018 regarding the collection of revenues and public funds
(Federal Decree Law Regarding Public Finance, 2019, Preamble)
When did this law come into effect?
The Federal Decree Law Regarding Public Finance was issued on 05 September 2019 and came into effect on 16 September 2019, the date of its publication in the Official Gazette No. 662. (Federal Decree Law Regarding Public Finance, 2019, Preamble)
Source Documents
This article analyses Federal Decree Law Regarding Public Finance for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.