Federal Decree Law No. (26) of 2019 Regarding Public Finance (finance and banking law)

Article (1) 
In application of the provisions of this Law by Decree, the following words and phrases shall have the meanings assigned to each of them, unless the context otherwise requires:  
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 Enti ties  : The Ministries established by virtue of Federal Law No. (1) of 1972 
Concerning the Competences of Ministries and the Powers of 
Ministers, and the Federal Government bodies and authorities as 
classified in article (3) of the present Decree -Law.  
Cha irman of 
the Federal 
Entity  : The concerned Minister, the Chairman of the Board of Directors, 
the chairman of the entity or the persons of similar status.  
Independent 
Federal Entities  : The Independent Federal Entities established according to the 
applica ble legislation in the State, as indicated in article (3) of the 
present Decree -Law.  
Governmental : Establishments and companies owned wholly or partially (affiliated Federal Decree- Law No. (26) of 2019  Regarding Public Finance  3 
 Companies  companies) by the Federal Government or Federal Entities.  
Fiscal Year  : Twelv e Gregorian months, starting as of the first of January and 
ending on the 31st of December of each year.  
General State 
Budget Law  : The federal law issued in each Fiscal Year adopting the relevant 
general budget.  
General Budget  : The Government budget ad opted by a federal law, which includes 
the estimated general revenues and public expenditures of the 
various Federal Entities during a specific fiscal year.  
Supplementary 
Budget  : The additional financial appropriations issued by a federal law to 
cover an y new policies that are not listed in the general budget, and 
to determine the source of necessary financing resources.  
General 
Financial 
Management  : A set of rules, systems and operations applicable to the Federal 
Entities by virtue of this Decree -Law, Cabinet resolutions, 
ministerial decisions and circulars relating to the provision and 
determination of the resources and their sources, allocation of the 
public fund, and specification of its disbursement aspects, the 
relevant controls, the accounting con trols, and the preparation of 
the relevant financial reports.  
Consolidated 
Chart of 
Accounts  : A consolidated classification adopted by the Cabinet for the 
accounts used in the Federal Entities for the classification and 
registration of financial transact ions.  
Financial 
Strategy 
(Financial 
Framework)  : Financial Strategy.  
Medium -Term  : The financial plan approved by the Cabinet, including the general 
economic prospects, the resources policies, and expenditure 
priorities, and the anticipated financial ris ks for not less than five (5) 
years.  
Medium -Term : A study containing the medium -term projections of total revenues Federal Decree- Law No. (26) of 2019  Regarding Public Finance  4 
 Budget 
Framework  and expenditures, the difference between them, and the financing 
mechanism required to cover the deficit, and the basic ex penditure 
ceilings as specified by the Cabinet, not exceeding the Medium -
Term Financial Strategy (Financial Framework).  
Medium -Term 
Expenditure 
Framework  : A report prepared on the basis of administrative, economic and 
programmatic classifications, as spe cified by the Cabinet, to 
estimate the expenditures of the Federal Entities.  
Programmes  : A combination of activities and services offered and specified by the 
Federal Entities and which aim to achieve the associated strategic 
objectives.  
Capital 
Project s : The projects aiming for the establishment, possession, or renewal of 
any assets owned by the Federal Entities.  
New Capital 
Projects  : The Capital Projects for which no amounts have been allocated in 
the General Budget, and which are created during the  fiscal year.  
Unified 
Treasury 
Account  : The Government central account that is opened by the Minister and 
into which all Federal Entities financial revenues are deposited.  
Trust money  : Third -party funds deposited in the Government bank accounts or 
the Federal Entities bank accounts, that are maintained until the 
fulfilment of the purpose intended.  
Financial 
Appropriations  : The binding maximum ceilings of the categories of expenditure, 
approved within the General State Budget Law.  
Mid -Year  : A half -year report prepared by the Ministry and Federal Entities, 
describing and analysing the reached revenues, expenditures, and 
the total performance related to the General Budget during the first 
half of the fiscal year, including a review of the economic 
assum ptions of the General Budget.  
Budget Review  : Budget and the updated projections regarding the budget of the 
relevant fiscal year.  
Federal Entity : The annual report prepared by every Federal Entity according to the Federal Decree- Law No. (26) of 2019  Regarding Public Finance  5 
 Final Account  instructions specified i n the annual financial circular issued by the 
Minister, including the financial statements and accompanying 
notes for the concluded fiscal year, subject to the accounting 
standards approved by the Federal Government.  
Consolidated 
Final Account  : An annual  report including the consolidated annual financial 
statements of the Federal Entities to be prepared by the Ministry 
based on the financial statements submitted by the Federal Entities 
according to the instructions specified in the annual financial 
circul ar issued by the Minister.  
Consolidated 
Final Account 
Approval Law  : The federal law approving the consolidated annual financial 
statements of the Federal Entities for the concluded fiscal year.  
Approved 
Accounting 
Standards  : The accounting principles a nd standards applied in the Federal 
Government and developed based on the "International Public 
Sector Accounting Standards" and the "International Financial 
Reporting Standards".  
Contingent 
Expenses  : Estimated financial amounts to confront a case which is not 
included in the appropriations of the General Budget of the relevant 
fiscal year, and which may not be deferred to the budget of the next 
fiscal year, due to relevance to the public interest requirements.  
General 
Revenues  : The resources of the Fed eral Government resulting from its public 
and private property, the fees and taxes collected by the competent 
Federal Entities, and the investment revenues in the various 
economic activities, in addition to the transfers, contributions and 
other financial resources, either sent or transferred to the Unified 
Treasury Account, and which are allocated to meet the general 
expenditures in the General Budget of the Federation.  
Government 
Guarantee  : An undertaking, in writing, to a third party, under which the 
Government commits to settle the liabilities of any Federal Entity on 
whose behalf the Government wishes to grant the guarantee.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  6 
 Cash Reserve  : An account financed by the actual cash surplus available, after 
deducting all the liabilities and guarantees exp ected to be settled 
during the subsequent fiscal year.  
Special Reserve  : A financial appropriation estimated annually to finance the 
contingent expenses.  
  
Chapter Two  
Objectives and scope of application hereof

Article (2) 
The objectives  
This Decree Law aims at achieving the following:  
1. Determining the rules for preparing the general budget, final accounts of the federal 
entities and the Consolidated Final Account, and lay down the rules governing financial resources of the federal entities.  
2. Establishing an integrated regulatory framework for general financial resources and 
policies of federal entities by defining the following:  
a. Principles of management and financial resources policies of federal entities.  
b. General rules governing collection, management and disbursement of the financial 
resources of federal entities.  
c. Powers, competencies, authorities and responsibility for managing the financial 
resources of the federal entities.  
d. Minimum reports on the management of financial resources for federal entities.  
e. Principles of governance, control and risk management related to the management 
of financial resources for federal entities.

Article (3) 
Decree -Law Application Scope  
The provisions of the present Decree -Law shall apply to the Federal Entities classified f or its 
purposes as follows:  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  7 
 1. Ministries and central bodies: The ministries established under Federal Law No. (1) of 
1972 Concerning the Competences of Ministries and the Powers of Ministers, councils, 
bodies and the like engaged in the executive, legislativ e and judicial federal activities.  
2. Independent Federal Entities: The Federal Entities that are either established or will be 
established according to the legislation in effect in the State, to perform specific public 
tasks or services, and that operate un der the supervision of the Government, and:  
a. Have the independent juristic personality and the legal capacity to act, prepare, 
organise and implement its special budget, as granted either by law or by the 
incorporation decision;  
b. Have a special administrativ e and organisational structure; and  
c. Not intended for profit.  
3. Governmental Companies, subject to the relevant provisions contained herein.  
  
Chapter Three  
Financial and Administrative Powers

Article (4) 
Powers of the Cabinet  
1. The Cabinet shall have the follo wing powers:  
a. Approval or amendment of the medium -term Financial Strategy (Financial 
Framework) and budget framework.  
b. Approval of Financing New Capital Projects.  
c. Approving the draft law for linking the general budget and the attached schedules 
for each fisc al year of the medium -term budget and any amendments thereto.  
d. Approval of supplementary budget projects.  
e. Approval of the draft law on adoption of the consolidated final account and the final 
accounts not covered thereby and the accompanying schedules.  
f. Issu ing policies and decisions related to the general budget and public financial 
management.  
g. Excluding some federal entities from the obligation to apply all or some of the 
provisions hereof.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  8 
 2. The Cabinet, upon proposal of the Minister, shall issue a decision specifying the terms 
and conditions governing the issuance of the government guarantee.

Article (5) 
Minister Powers  
Upon the approval of the Cabinet, the Minister shall specify the State funds and resources management rules and the General Financial Management system, and shall coordinate the 
State financial policies, at the federal level, and issue the relevant procedures and circulars. 
The Minister may:  
1. Propose the State general financial plans and policies, within the scope of the Ministry, 
and refer t hem to the Cabinet for approval;  
2. Propose the draft laws relating to the State general financial policy, in coordination with 
the relevant authorities;  
3. Issue procedures guidelines, circulars and decisions relating to the State General Budget 
and general financial policy, and the rules for the preparation of the Final Account, to the 
extent that is not inconsistent with the applicable legislation in the State;  
4. Propose the consolidated financial policies, the consolidated chart of accounts and the general rule s for the regulation of the accounting operations and records according to 
the accounting standards approved by the Federal Government, and refer them to the 
Cabinet for approval;  
5. Ensure general supervision on the preparation of the draft laws on the Gener al Budget 
and the consolidated final account;  
6. Propose the reduction of appropriations determined in the General Budget, in case there 
is an exceptional decline of the financial resources of the Federal Entities, and refer the 
same to the Cabinet for approv al; 
7. Oversee all aspects of the implementation of the General Budget, including the 
mechanism for the collection of the financial resources of the Federal Entities, the 
controls on expenditures, and the Treasury operations applicable to the Federal Entities ; 
8. Develop the rules for opening and closing the bank accounts of the Federal Entities;  
9. Issue a decision regulating the transfer of the amounts necessary to cover the expenses Federal Decree- Law No. (26) of 2019  Regarding Public Finance  9 
 of the Government from the Unified Treasury Account to another bank account or mo re; 
and  
10. Submit the following proposals to the Cabinet for approval:  
a. Medium -Term Financial Strategy (Financial Framework).  
b. Medium -Term Budget Framework proposal.  
c. The draft general budget law.  
d. The draft Supplementary Budget laws.  
e. The Consolidated Final Accou nt draft law.

Article (6) 
Ministry Competences  
The Ministry shall:  
1. Prepare the financial policy of the Federal Government;  
2. Prepare the Medium -Term Expenditure Framework of the Federal Entities;  
3. Study the draft Medium -Term Plan Budget of the Federal Entit ies to be taken into 
consideration and make the relevant proposals, when necessary;  
4. Prepare the draft General State Budget Law;  
5. Follow up the implementation of the General Budget;  
6. Develop the rules for incurring expenditures and collecting the financial re sources of the 
Federal Entities, and for the management of bank accounts, assets and liabilities 
accounts, and investment projects;  
7. Oversee and follow up the implementation of the General Budget performance, including the mechanism for the collection of th e financial resources of the Federal 
Entities, the expenditures controls, and the management of the Treasury operations in the Federal Entities, and submit reports in this regard to the Cabinet;  
8. Manage the Public Treasury and organise the bank accounts of the Federal Entities, including opening and closing bank accounts, according to the provisions hereof;  
9. Open zero- balance accounts for the Federal Entities at the commercial bank (s) 
operating in the State, through which the relevant annual budgetary approp riations are 
paid;  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  10 
 10. Review, examine and audit the financial and administrative transactions and records 
having a financial impact on the Federal Entities, based on the public interest 
requirements and the instructions issued by the Minister;  
11. Oversee and man age the general Cash Reserve account of the Government, according to 
the rules, legislation, policies and procedures in effect;  
12. Develop and issue the consolidated financial policies and manuals, the Consolidated Chart of Accounts, and the general rules on the accounting closing periods, and prepare 
the reports in the light of the approved accounting standards;  
13. Develop and amend the financial and accounting policies of the Federal Entities and 
refer them to the Cabinet for approval;  
14. Prepare the consolidated Final Account;  
15. Provide the necessary orientation, support, and training to the employees of the Federal 
Entities with respect to the implementation of the present Decree -law, and the relevant 
regulations, decisions and circulars;  
16. Request any information or  data relating to the bank accounts of the Government or any 
Federal Entity from the banks operating in the State;  
17. List the amounts necessary to settle the public debt dues and its service in the General State Budget, on annual basis;  
18. Gather and prepare the governmental financial reports, in coordination with the local 
Emirates; and  
19. Coordinate with the Central Bank of the United Arab Emirates to ensure that the Bank monetary policy and the Federal Government financial policy are compatible during the 
next f iscal year.

Article (7) 
Management of public funds  
The management of public funds exercised by the Minister in accordance with the provisions 
hereof and its Executive Regulations aims at cash hedging which can be achieved by limiting 
the level of current  cash balances held in the Treasury Single Account through using tools that 
allow the Government to safely invest surplus balances in short -term investment instruments.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  11

Article (8) 
Government Banking Procedures  
The Minister or his authorized representative  shall open government bank accounts, subject 
to the following rules:  
1. The basic bank account of the government shall be opened in the bank.  
2. All resources of the federal entities covered by the Budget Appropriation Act shall be 
deposited in the Treasury Sin gle Account and all payments shall be made thereto.  
3. No account may be opened with any commercial bank without the prior written approval of the Ministry.  
4. The Minister may open, suspend or close the bank accounts at local and foreign 
commercial banks to fac ilitate the collection of resources or making the payment. The 
balances of these bank accounts shall remain within the limits approved by the Minister, 
and the surplus shall be transferred to the treasury single account in accordance with the 
instructions issued by the Ministry.  
5. The Minister may enter into agreements with the Bank and other local and foreign commercial banks qualified for the effective management of balances in temporary bank 
accounts in accordance with the regulations issued by the Ministr y regarding the 
procedures for opening, closing and managing such accounts.  
6. The funds available, in one of the government bank accounts or of any Federal Entity accounts, shall be transferred to another government bank account or a bank account of 
another Federal Entity at the request of the Minister and upon approval of the Cabinet 
with the notification of all relevant authorities.  
7. The Minister may link the funds available in the government bank accounts as short -
term deposits.

Article (9) 
Presenting the  draft financial legislation to the Ministry  
All draft laws and bylaws that result in creating financial obligations or implications on the 
general budget shall be referred to the Ministry for opinion before submitting the same to the 
Cabinet.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  12 
 Chapter Four 
Responsibilities and obligations of the federal entities and their employees

Article (10)  
Responsibilities and obligations of the federal entities and their employees  
1. The decentralization and powers of the federal entities shall not prejudice their 
respon sibility to apply the financial and accounting procedures and instructions in place 
to preserve and dispose of their public funds.  
2. Decentralization shall not prejudice the legal liability of the staff responsible for financial 
and accounting functions in t he event that they violate the provisions hereof or its 
executive regulations, laws, bylaws and decisions relating thereto.  
3. The federal entities are responsible for planning, preparing and implementing their 
budget and for the preparation of periodic finan cial reports and the final account.

Article (11)  
Federal Entities Obligations  
1. In coordination with the Ministry, the Federal Entities shall:  
a. Meet the objectives specified in the Medium -Term Financial Strategy (Financial 
Framework) as approved by the Cabinet, and obtain the Cabinet prior approval upon 
amending any objective, to the extent not exceeding, in any case, the total financial 
appropriations allocated for the said objectives at the amendment time;  
b. Comply with the rules issued by the Ministry on th e application of the planning and 
analysis systems of the approved strategic objectives, programmes and capital 
projects;  
c. Manage the financial resources efficiently and effectively; and  
d. Implement the strategic objectives within the limits of the financial appropriations 
allocated to the Federal Entities.  
2. The Federal Entities may not borrow, lend or provide debt guarantees unless they do so 
in coordination with the Ministry of Finance and in line with the relevant legislation.  
3. The Federal Entities may not co nclude sponsorship contracts to fund events and Federal Decree- Law No. (26) of 2019  Regarding Public Finance  13 
 activities, unless listed within its approved annual budget. The Federal Entities may 
conclude the sponsorship contracts financed by the private sector according to the 
regulatory rules of the Ministry.  
4. The F ederal Entities shall provide any data or information requested by the Ministry 
during the period specified in the request.  
  
Chapter Five  
General Provisions of the General Budget

Article (12)  
General Budget  
The general budget is the financial program of federal entities, which includes all their 
estimated financial resources collected and estimated public expenditures for a given fiscal 
year, to achieve economic and social development through the optimal distribution and efficient use of resources within the framework of the federal strategy for expenditures 
expected from federal entities during a future fiscal year provided that balancing income and 
expense shall be take into account, and developed in light of the medium -term financial 
strategy (financial framework).

Article (13)  
Independent Budgets  
The laws of the independent federal service entities, including independent federal entities 
whose budgets are subject to approval of their governing body, may expressly provide for a 
special independent budg et in which their detailed resources and expenses shall be presented 
in a schedule to be attached to the law for linking general budget; moreover, these federal 
entities shall be committing to:  
1. its governance and management principles;  
2. the consolidated acc ounts structure and provision of data and reports according to the 
prescribed form, and within the time determined by the Ministry.  
  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  14

Article (14)  
Submitting Independent Budgets  
The independent federal entities are obliged to submit their budget to the Ministry for 
approval in the draft law for linking the general budget, on the date specified by the Minister 
in the annual financial circular provided for in article (21) hereof.

Article (15)  
Insertion into Draft Law for Linking the General Budget  
1. The Minis try is obliged to register the budget appropriations of the independent federal 
entities, including its own estimated financial resources, in the draft law for linking the 
general budget.  
2. No financial burdens shall be placed on the Government in the event that the 
independent Federal Entity does not achieve any self -estimated resources unless the 
public interest requires otherwise.

Article (16)  
Medium- term Budget Draft Laws  
Under a decision of the Cabinet, the federal entities may be authorized to prepare  a draft 
budget for a medium -term plan, the number of years of which shall be determined in a 
decision of the Cabinet, including estimates of financial resources and expenditures for each 
Fiscal Year, and the decision of the appropriations for this budget shall be made by the 
Cabinet.

Article (17)  
Medium- term Budget Amendments  
In preparing the draft law for linking the general budget for each year of the medium -term 
plan, the following shall be considered:  
1. Any amendments to this Plan's Budget that were ap proved by the Cabinet.  
2. Medium -term Financial Strategy (Financial Framework).  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  15 
 3. Medium -term Budget Framework.

Article (18)  
Medium- term Budget Framework  
The Medium -term Budget Framework shall point out the basis upon which the total 
expenditures ceilings are  determined in the annual budget and the estimates of the total 
expenditures of the current Fiscal Year are only indicative ones for the upcoming Fiscal Year.

Article (19)  
Disclosure of In -Kind Support  
Federal Entities authorized to obtain in- kind suppor t shall disclose such support and the value 
thereof in accordance with the form prepared by the Ministry for such purpose. The relevant 
statement shall be submitted with the documents related to the draft Budget of such Federal Entity.

Article (20)  
Accou nts Structure  
1. The Cabinet shall issue the Consolidated Accounts Structure upon the Ministry's 
proposal and the Federal Entities shall comply with the same.  
2. The Federal Entities shall prepare the reports in accordance with the regulations and 
rules determined in the Consolidated Accounts Structure.  
3. The Ministry shall issue the directives and instructions necessary to enable the Federal 
Entities of preparing their reports in accordance with the Consolidated Accounts 
Structure.  
 
Chapter Six  
Preparation of Gene ral Budget

Article (21)  
Financial Circular on Regulations of Preparation of the Draft General Budget  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  16 
 The Minister shall issue a financial circular to the Federal Entities within the first week of the 
third month of every Fiscal Year provided that such circ ular shall determine the Budget ceiling 
and the date of submitting the draft General Budget to the Ministry.

Article (22)  
Study and Analysis of Federal Entities' Initial Estimates  
The Federal Entities included in the General Budget shall prepare the initial estimates of their financial resources based on the type thereof and state the sources thereof. Moreover, they 
shall prepare the initial estimates of their current and capital expenses, consistent with the 
strategic objectives and their approved activit ies of each program. Such initial estimates shall 
include the performance measures and the financial efficiency indicators.  
The initial estimates shall be submitted to the Ministry on the date determined by the Minister's circular mentioned in article (21)  hereof.

Article (23)  
Delay of the Federal Entities in Submitting the Draft General Budget  
In case any Federal Entity delayed in submitting the draft Budget thereof to the Ministry on the date determined in the circular mentioned in article (21) hereof, the Ministry shall, upon 
notifying such entity, prepare these estimates based on the current Fiscal Year Appropriations, 
bearing in mind the changes and amendments made during the current Fiscal Year, the other 
considerations, and its strategic programs an d objectives.

Article (24)  
New Capital Projects  
Upon proposing New Capital Projects based on the long -term capital expenditure plans, the 
Federal Entities shall submit the following:  
1. Approved title deed of the land allocated for the project or the decision issued by the 
entity responsible for allocating the project's land.  
2. The project's feasibility study.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  17 
 3. The project's design scheme.  
4. The project's timeline and the amounts required throughout the execution years.  
5. All annual costs required for operation upo n completion of the project.  
6. Any other requirements according to the circulars issued by the Ministry and competent 
entities in this regard.

Article (25) 
Appropriations for Completion of the Capital Projects  
The executing Federal Entity shall, in coordination with the Ministry, propose the Financial Appropriations required for completing the projects, which are included in the General 
Budget and the Independent Budgets, for the Fiscal Year for which the Budget was prepared.

Article (26)  
Study and Assessm ent of the New Capital Projects  
1. The Ministry responsible for developing the infrastructure shall study, assess and 
approve the New Capital Projects to be established, acquired or renewed before 
submitting the same to the Cabinet.  
2. In case the total cost of any budgetary Capital Project is amended, the Federal Entity responsible for executing the project shall, in coordination with the Ministry, amend the 
project's total cost and point out the reasons therefor.

Article (27)  
Special Reserve  
The Ministry shall annually estimate and allocate an amount for the Special Reserve within the General Budget for meeting the unforeseen or non -budgeted expenditures.

Article (28)  
Resources Estimation  
The Federal Entities shall estimate their financial resources and indicate the basis upon which Federal Decree- Law No. (26) of 2019  Regarding Public Finance  18 
 the said estimation is based, along with the influencing factors during the relevant fiscal year. 
The Ministry shall study and approve the same within the annual budget strategy proposal 
and the draft General State Budget Law.

Article (29)  
Balanced -Budget Principle  
The Ministry shall endeavour to achieve a balanced -budget principle between the total 
financial resources of the Federal Entities on the one side, and the total general expenditures on the other side. If there is a dis crepancy due to an increase in estimated expenditures over 
anticipated revenues, the Ministry shall propose alternative sources of funding to achieve the 
required balance.

Article (30)  
Maximum Limit of Expenditures  
If the total estimates of the initial e xpenditures exceed the estimates of the Federal Entities' 
initial financial resources, the Ministry shall propose a maximum limit for the expenditures 
that shall be complied with by the Federal Entities upon approval of the Cabinet.

Article (31)  
Draft La w for Linking the General Budget  
1. The Ministry shall prepare the draft Medium -term Budget Framework and submit the 
same to the Cabinet.  
2. The Ministry shall prepare the draft Law for linking General Budget, attached with all 
explanatory reports and documents,  and submit the same to the Cabinet.

Article (32)  
Classification of Resources  
When preparing the draft Law for linking General Budget, the Federal Entities' annual financial resources shall be classified in accordance with types of the resources mentione d in Federal Decree- Law No. (26) of 2019  Regarding Public Finance  19 
 article (57) hereof.

Article (33)  
Classification of Expenditures  
When preparing the draft Law for linking General Budget, all annual expenditures shall be 
classified according to the following classifications:  
1. Staff remuneration.  
2. Goods and services.  
3. Subsidies.  
4. Grants, donations and endowments.  
5. Social benefits.  
6. Other federal expenditures.  
7. Capital expenditures.

Article (34)  
Registration of Grants  
The estimates of the grants, donations, endowments among others that are accepted by the 
Federal Entities  and consistent with the objectives and competencies thereof shall be 
registered in the total resources of the Medium -term Budget Framework and in the estimate 
of the resources of the draft Law for linking General Budget. In addition, the expenditures 
related to management of such grants shall be determined in the draft General Budget of the 
Federal Entity.  
  
Chapter Seven  
Approval for the General Budget

Article (35)  
Draft Law for Linking the General Budget 
The draft Law for linking the General Budget, the Budgets of the Independent Federal Entities 
and the relevant documents shall be submitted to the Federal National Council at least two Federal Decree- Law No. (26) of 2019  Regarding Public Finance  20 
 months before the beginning of the Fiscal Year for discussion and expressing opinions. 
Afterwards, the Federal National Council shall refer the draft law to the Federal Supreme 
Council, accompanied with the relevant remarks, for approval.

Article (36)  
Notification of the Budget  
The Ministry shall notify the Federal Entities of the Financial Appropriations allocated thereto  
for the prepared Fiscal Year upon issuing the Law for linking the General Budget.

Article (37)  
Monthly Provisional Financial Appropriations  
In case the Law for linking the General Budget was not issued before the beginning of the 
Fiscal Year, monthly pr ovisional appropriations may, upon the Ministry's proposal, be 
approved under a federal decree based on one of twelve parts of the previous Fiscal Year Appropriations.  
  
Chapter Eight  
Amendment to the General Budget

Article (38)  
Amendment to the General Bu dget  
All off -budget expenditures, the expenditures exceeding the estimates mentioned in one 
category and the transfer of any amount from one category to any of the General Budget 
categories shall be governed by a law. However, such expenditure or transfer may be 
approved by a decree law in cases of urgent need.

Article (39)  
Supplementary Budget  
1. The Ministry shall refer a draft federal law on the Supplementary Budget to the Cabinet in any of the following cases:  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  21 
 A. Approval for new policies that have non- budge ted financial impacts.  
B. Provision of funding to the necessary Capital Projects outside the budget cycle.  
C. Any other cases as determined by the Cabinet.  
2. The Supplementary Budget shall be issued under a federal law.  
3. The Federal Entities shall only submit reque sts for supplementary appropriations during 
the Fiscal Year when strictly necessary. In such case, they shall point out the sources of 
the resources necessary to cover such requests.  
  
Chapter Nine  
Implementation of the General Budget

Article (40)  
Implemen tation of the General Budget  
The Federal Entities' financial resources and expenditures stemmed from transactions carried 
out during the Fiscal Year shall be registered in the Fiscal Year's accounts according to the 
accrual of right or debt and regardless of the date on which it shall be implemented.

Article (41)  
Accounting System  
The Government shall apply the accrual basis of accounting system in accordance with the UAE accounting standards.

Article (42)  
Accounting Standards Board 
1. Upon the Minister's decision, a government accounting standards board comprising 
employees from the Ministry and highly qualified and experienced officials may be 
formed and such decision shall determine the board's powers and responsibilities.  
2. The Minister shall refer the re commendations of the accounting standards board 
concerning the amendment and development of the accounting standards in the Federal Government to the Cabinet for approval.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  22 
 3. The Federal Entities shall keep complying with the accounting policies and standards  
currently approved by the Ministry until the Cabinet issues its decision.

Article (43)  
Compliance with the Financial Appropriations  
1. In implementing the budget, the Federal Entities shall comply with the limits of the 
financial appropriations allocated f or them in the General State Budget Law.  
2. The settlement of the general expenditures, their payment order, and the issuance of the means of payment by the Federal Entities, shall be made according to the applicable rules. The said expenditures shall not be disbursed unless they are determined and 
payable according to the legislation in effect.

Article (44)  
Contracts Conclusion  
The Federal Entities may not enter into contracts that may incur financial obligations 
exceeding the fiscal year to the coming fiscal year or years, unless according to the procedures 
and controls approved by the Federal Government.

Article (45)  
Adherence to Total Cost of the Projects  
Notwithstanding the provisions of article (44) hereof, the total cost of the Capital Projects 
mentio ned in the General Budget may be depended provided that when spending on the 
project during the Fiscal Year begins, the Financial Appropriations allocated thereto in the 
Budget for such year shall be complied with.

Article (46)  
Multiannual Financial Appr opriations Allocation  
The allocation of multiannual Financial Appropriations may be provided for in the General 
State Budget Law to cover any future contractual obligations, provided that the ceiling on cash Federal Decree- Law No. (26) of 2019  Regarding Public Finance  23 
 expenditure for the first fiscal year of the multiannual project and the total cost of the project 
during the expected period of execution are determined.

Article (47)  
Non -budgeted Projects 
Upon obtaining the Cabinet's approval, the Federal Entities may establish Capital Projects, enter into association or launch tenders regarding the non -budgeted projects provided that 
the provisions related to the Supplementary Budget mentioned herein shall be applied to such projects.

Article (48)  
Non -Completion of the Capital Projects  
In case any of the Capital P rojects was not completed during the Fiscal Year, the Financial 
Appropriation or the rest thereof shall be deposited in the subsequent Fiscal Year's Budget related to the execution plan of such project.

Article (49)  
Controls of Disbursement of Expenditur es 
The Federal Entities shall spend on the projects included in the General Budget in accordance with the regulatory and legal controls determined under the provisions hereof.

Article (50)  
Transfers  
Subject to the provisions of article (38) hereof, finan cial transfers shall be made in accordance 
with the controls and rules contained in the transfer policy issued by the Ministry and 
approved by the Minister.  
  
  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  24

Article (51)  
Use of the Special Reserve  
The Special Reserve mentioned in article (27) hereof may, in accordance with the provisions 
of a decision issued by the Cabinet, be used to fund some of the emergent or unforeseen 
requirements that may occur during the current Fiscal Year provided that the beneficiary, 
strategic objective and targeted program shall be determined.  
Upon completing the execution, the competent Federal Entity shall prepare a table concerning 
the usage and point out the Entity Final Account and the Consolidated Final Account in the 
attached explanatory memorandum.

Article (52)  
Non -executed Financial Appropriation  
Without prejudice to the provisions of Articles (48) and (49) hereof, any budgetary Financial 
Appropriation that was not fully executed during the Fiscal Year shall be invalid.

Article (53)  
Maintaining Records and Report s 
The Federal Entity shall maintain comprehensive electronic records and supporting documents regarding implementation of its Budget as well as the performance indicators and 
reports in accordance with the regulations and dates determined by the Ministry.

Article (54)  
Periodic Reports  
The Ministry shall provide the Cabinet with a biannual report on the Federal Government 
financial statements.  
  
 
 
 Federal Decree- Law No. (26) of 2019  Regarding Public Finance  25 
 Chapter Ten  
Follow -up of Implementation of the General Budget

Article (55)  
Control and Internal Auditing  
1. The competent administrative departments in the Federal Entities shall control 
implementation of the General Budget in terms of collection of its resources, payment of 
its expenditures, follow -up of performance and compliance with the legislations in force 
in the State.  
2. The Internal Auditing Office in the Federal Entity shall independently make investigations to ensure that the administrative department implements the General 
Budget in accordance with the working mechanisms, policies, procedures, regulations 
and risk management rules in force in such entity.

Article (56)  
Federal Entities Reports  
The Federal Entities shall provide the Ministry with the required monthly and biannual 
financial reports and statements within the specified dates.  
  
Article (56) (bis ) 
Governmental Companies Reports  
The governmental companies determined by the Cabinet, based on the Minister proposal, shall provide the Ministry with the required reports and financial statements in the form, 
content, and by the deadlines specified by the  Ministry.  
  
Chapter Eleven  
Financial Resources of Federal Entities

Article (57)  
Types of Resources  
The financial resources of Federal Entities to be collected for purposes of budget preparation Federal Decree- Law No. (26) of 2019  Regarding Public Finance  26 
 consist of the following:  
1. Taxes, fees and returns that are im posed under a federal law.  
2. Fees and Charges collected by the Government for its provided services.  
3. The share of the General Budget borne by borne by each emirate in the State.  
4. The Government's private property resources.  
5. Contributions paid by retired milit ary personnel.  
6. Fines and amounts awarded by a court judgement.  
7. Investment returns and re -investing Government funds.  
8. Grants, donations, endowments and the like.  
9. Administrative fines.  
10. Any other resources set by the Cabinet.

Article (58)  
Taxation  
The Cabinet shall impose or exempt the federal fees or returns of different types, except taxes, 
under the decision of the Cabinet upon the proposal of the Minister, in accordance with 
legislative provisions in force in the State.

Article (59)  
Collection of Resou rces 
Subject to the terms and conditions for the acceptance of earmarked grants, donations, endowments and the like. The relevant Federal Entity shall collect and adjust its resources 
according to the legislations in force and the instructions of the Minis ter.

Article (60)  
Local Fees  
The Federal Entities shall not add or collect any fees for and local authority in any emirate 
unless the Federal Entities coordinate this matter with the Ministry.  
  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  27

Article (61)  
Deductions from Resources 
The Federal Entities  shall not deduct any amounts of their resources under any circumstances 
or for any reasons in accordance with the legislations in force.

Article (62)  
Deposition of Resources  
In accordance with article (8) hereof, the Federal Entities shall deposit the c ollected resources 
to the Treasury Single Account in accordance with the rules and instructions set by the 
Ministry. No certain revenue shall be allocated for certain expenditures unless the Cabinet 
approve of such, excluding the grants, donations, endowme nts and the like.

Article (63)  
Grants, Contributions, Donations and the Like  
1. The Federal Entities may accept grants, contributions, donations and the like that are 
consistent with the objectives and competencies of the said entities. A special budget 
shall be prepared for this purpose.  
2. Any grants, contributions, donations, and the like shall be entered into the accounting 
records of the concerned Federal Entity, and classified according to their nature, based 
on the Consolidated Chart of Accounts. They sh all also be included in the financial 
statements of the year during which they are received.  
3. The amounts of repeated and definitive grants, contributions, donations and the like 
shall be listed within the annual budget of the Federal Entity.

Article (64)  
Conclusion of Revenue -Sharing Contracts 
No Federal Entity shall conclude any contracts with the private institutions, companies and 
relevant entities in the UAE governments to provide services to the people on the basis of 
sharing the revenues unless it w as approved by the Ministry and the Cabinet. The concluded Federal Decree- Law No. (26) of 2019  Regarding Public Finance  28 
 contracts shall not be renewed before the Decree Law comes into force or after the expiration 
thereof without the approval of the Ministry.

Article (65)  
Private Sector Participation  
No Federal En tity may enter into a contract with a private juristic person with the purpose of 
participation in the management, functioning or operation of any public facility, unless 
according to the regulating legislation in force in the Federal Government.  
  
Chapter Twelve  
Federal Entities Final Account

Article (66)  
Financial Circular  
The Minister shall issue a financial circular to all Federal Entities setting the rules, regulations, 
accounting treatments and settlements that are necessary for carrying out the draft  Federal 
Entity Final Account and the Consolidated Final Account for the current Fiscal Year within the second week of the tenth month of each Fiscal Year.

Article (67)  
Rules and Dates of Account Closure and Preparing the Final Account  
1. Accounting periods  shall be closed up to a maximum of the eighth day of the following 
month.  
2. The Minister shall set the date of account closure in the end of the Fiscal Year in the financial circular mentioned under article (66) hereof.

Article (68)  
Federal Entity Draft Final Account  
1. Notwithstanding the provisions mentioned in the laws of establishing the Independent Federal Entities, every Federal Entity shall prepare its draft final account for the Federal Decree- Law No. (26) of 2019  Regarding Public Finance  29 
 concluded fiscal year, according to the basic rules set out in the present  Decree- Law and 
the financial circular issued by the Minister in this regard. The Federal Entity shall submit 
the same to the State Audit Institution and a copy thereof shall be delivered to the 
Ministry with its report on the extent of achievement of the performance goals, within 
the time limits specified in the circular.  
2. The Federal Entities and the competent administrative units shall be responsible for the control and verification of the validity of its final account statements and for the determination  of the achievement of such goals.  
  
Article (68) (bis)  
Independent Federal Entities Final Accounts Auditing  
1. An independent federal entity may appoint a third -party auditor if provided for in the 
relevant establishment law. The audited financial statements  approved by the Board of 
Directors shall be released prior to the date specified in the financial circular for the State Audit Institution to issue its initial report on the final account of that entity.  
2. The independent federal entity shall send a copy of  the approved third -party auditor 
report to the Ministry of Finance no later than two weeks following the report approval date.  
  
Chapter Thirteen  
Federal Government Consolidated Final Account

Article (69)  
Draft Consolidated Final Account  
1. The Ministry shall prepare the consolidated final account, according to the provisions of the present Decree- Law and the accounting standards approved by the Federal 
Government.  
2. The Ministry shall prepare a federal draft law on the approval of the consolidated final 
accoun t for the concluded fiscal year and refer the same to the State Audit Institution.  
  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  30

Article (70)  
Consolidated Final Accounts Draft Law  
1. The Minister shall refer the Consolidated Final Accounts Draft Law in its final version no 
later than the end of April o f the second fiscal year of the relevant fiscal year to which the 
final account pertains, supported by the consolidated draft final account, the relevant report of the State Audit Institution, and the reply of the Ministry, to the Cabinet for 
approval in t he version as it may deem appropriate, which in turn shall refer the same to 
the Federal National Council to give its remarks prior to filing it to the Federal Supreme Council to be approved as a preliminary step for issuance.  
2. The Independent Federal Entit ies for which no clause was singled out in the General 
State Budget Law shall refer their financial statements approval drafts to the Cabinet, pursuant to the instructions issued by the Ministry.

Article (71)  
Building up the Cash Reserve  
1. The Ministry shall prepare a report illustrating the mechanism by which the Cash 
Reserve, specified for the purposes of supporting the budget, is calculated. This report 
shall be submitted to the Cabinet in order to issue its decision on determining the 
percentage of the total General Budget that shall be registered for this purpose. This 
account shall be funded and withdraw amounts therefrom in accordance with the 
provisions of this decision.  
2. The Government shall build up another Cash Reserve with a minimum of fifteen (15 ) 
billion AED in order to support the government's financial situation. The minimum of the 
Cash Reserve may be increased by decision of the Cabinet, provided that the Ministry shall manage it in accordance with the rules and regulations issued by decision of the 
Cabinet upon the proposal of Minister.  
3. Subject to Clauses (1) and (2) of this Article, the Ministry, after the Minister's approval on 
the draft law final account of the ended Fiscal Year, shall transfer no more than seventy 
(70%) percent of the Cash Reserves in excess of its needs to Emirates Investment 
Authority.  Federal Decree- Law No. (26) of 2019  Regarding Public Finance  31

Article (72)  
Investing the Government Funds  
Subject to the provisions of Federal Decree Law No. (4) of 2007 and the amendments thereof, 
the Minister shall issue a decision on organizing the  investment of the excess funds of the 
public treasury in term deposits, each of them shall be renewable for only one year, provided that these funds shall be deposited in State banks.

Article (73)  
Deposition of Excess Funds  
1. All Federal Entities shall de posit any excess funds resulted from the annual budget 
approved thereto in the law for linking the general budget and the amendments thereof 
in the Treasury Single Account within thirty (30) days from the date of receipt of the 
report of the State Audit In stitution on the preliminary draft final account for this entity 
by the Ministry.  
2. Upon the Minister's proposal, the Cabinet may issue a decision to oblige any Federal 
Entity that has excess cash balance by the deposition of this balance in the Treasury 
Single Account within the term specified in the decision or deducting the amount of this 
excess cash from the instalments of funding its annual budget.  
  
Chapter Fourteen  
Final Provisions

Article (74)  
Documents Retention  
1. All financial and administrative docum ents, registers and instruments of different types 
that have a financial impact and are related to any fiscal year shall be retained for at least ten years from the date of issuance of the Consolidated Final Account Law, provided that 
the documents, regist ers and instruments requiring permanent preservation are 
transferred to the national archives and national library. The said documents, registers 
and instruments may be destroyed after the elapse of the stated period if it is established Federal Decree- Law No. (26) of 2019  Regarding Public Finance  32 
 to the relevant en tity that they are deemed not necessary, according to the legislation in 
force in the State.  
2. The documents, registers and instruments may not be destroyed even after the elapse of 
the stated period if they are the subject -matter of an investigation or admi nistrative or 
judicial dispute.  
  
Article (74) (bis)  
Disclosure Requirements Restrictions  
No information, data, or reports may be released or circulated if doing so would:  
a. harm the State economic interests;  
b. affect security or international relations; or  
c. cause financial losses to the State.

Article (75)  
Transfer of Financial Appropriations and Allocations  
1. In case a Federal Entity has undergone restructuring, merger or dissolution, or in case any programmes or activities existing between the Federal Entities  have been 
transferred, cancelled or merged, the Ministry shall be authorised to transfer the financial appropriations and allocations relating to the said entities, programmes or 
activities.  
2. The accounts of the Federal Entities that have been merged or dissolved shall be closed according to the procedures issued by the Minister.

Article (76)  
Trust Money  
1. The Federal Entity shall enter and list the received trust money as a liability in its accounting books until they are used for its intended purpose or is paid to the intended 
beneficiary.  
2. The Federal Entities shall deposit the trust money in independent accounts and they Federal Decree- Law No. (26) of 2019  Regarding Public Finance  33 
 shall be managed by the Ministry, according to the procedures approved by the Federal 
Government.  
3. The action to claim any trust money sh all not be heard after five (5) years from the date 
on which the right of recovery has arisen. After the elapse of the stated period, the trust money shall become public funds to be sent to the State Treasury.  
4. Notwithstanding the provision of Clause (3) of  this Article, and at the proposal of the 
Minister, the Cabinet may issue a decision to refund any trust money that has become public funds after the elapse of the period set out in Clause (3) of this Article, if the right 
of the claimant to recover the said funds is established.

Article (77)  
Government Guarantees  
1. The Cabinet, on the recommendation of the Ministry, may grant guarantees and pledges 
for payment on behalf of any Federal Entity.  
2. The decision of the Cabinet shall specify the requirements of gr anting this guarantee or 
the procedures to be taken in order to reimburse any money paid by the Government 
resulting from the guarantee of the Federal Entity.  
3. Any money paid by the Government resulting from a government guarantee shall be 
deemed owed debts  to the Government. The Minister, in this case, may specify the 
requirements for reimbursement of such amounts.  
4. The beneficiaries of such guarantees shall be committed to submit monthly and periodic 
reports concerning the payment of the debts related to th ese guarantees to the Ministry.

Article (78)  
Limitation of Third -Party Debts  
1. Any claim for debts or entitlements owed by the Federal Government entities that have not been sought to be addressed by their owners before the end of the fifth year 
following the fiscal year in which they first became due shall not be heard.  
2. The Federal Entities shall prepare a detailed statement of the debts that will be erased during the fiscal year within the first three months of the said year. The Federal Entities Federal Decree- Law No. (26) of 2019  Regarding Public Finance  34 
 shall pr ovide the Ministry with a copy of the same.  
3. The Federal Entity shall publish the extinguished debts that will be erased at the Federal 
Government level, in the methods it may deem appropriate.  
4. Notwithstanding the provision of Clause (1) of this Article, th e Minister may approve 
the recovery of any due sum to its owner after the period for claiming it has passed, up 
to a maximum of AED 300,000, if it is established that the owner has the right to claim 
the recovery of these funds. Claims that total more than  AED 300,000 "three hundred 
thousand UAE Dirhams" shall be approved by the Cabinet.  
5. Notwithstanding the provision of Clause (1) of this Article, trust money whose intended purpose has not yet passed shall not be subject to the statute of limitations.

Article (79)  
Non -enforceability of Federal Entities' Debts to Limitation Periods  
No limitation periods shall be applied to the Federal Entities' debts or claims filed against third parties. The relevant Federal Entity shall take all the administrative and  legal procedures 
available thereto in order to file a claim requesting to pay the debt once it is aware that this debt is due.  
  
Article (79) (bis)  
Follow -up and Review of the State Dues  
1. The Ministry shall review the State dues. To accomplish this, the Ministry has the power to review the financial records, follow up on revenue operations of the federal entities, 
and verify that revenues are recorded, collected, and transferred to the Unified Treasury 
Account in accordance with the procedures approved by t he Federal Government.  
2. The Ministry shall provide the Cabinet with biannual reports on uncollected revenues in 
the federal entities.  
  
 
 Federal Decree- Law No. (26) of 2019  Regarding Public Finance  35

Article (80)  
Interruption of the Limitation Period  
The limitation period provided in article (76/3) and (78) hereof shall be interrupted in case of 
filing a claim, whether administrative or judicial, resulting the commencement of a new 
period.

Article (81)  
Debt Relief and Write- off 
1. The Cabinet may relief the Federal Entities or individuals from the debts and entitlements , in whole or in part, due to the Federal Entities upon request from the 
Minister, attached thereto the Ministry's vision, based on the request submitted by the 
relevant Federal Entity under a written brief submitted to the Minister attached thereto 
the re asons and justifications of such relief.  
2. The Cabinet may specify special conditions to grant any relief according to the previous Clause.

Article (82)  
Inventory Committees  
1. A permanent inventory committee shall be established in each Federal Entity by a 
decision of the competent ministry, the person acting as such or the director general of 
the Independent Federal Entity that outlines the committee's missions and the Ministry and the State Audit Institution shall be notified of such decision.  
2. The competent  department of the Federal Entities is entitled to conduct an inventory for 
in-custody cash whenever it deems it necessary.

Article (83)  
Disciplinary Penalties  
Without prejudice to any penalty mentioned in any other law, every employee breaching the prov isions hereof shall be penalized in accordance with the disciplinary penalties stated in the Federal Decree- Law No. (26) of 2019  Regarding Public Finance  36 
 Human Resources Law in the Federal Government.

Article (84)  
Replaced by Federal Law No. 7 of 2022.

Article (85)  
Abolition of Legislations  
1. Federal Law No. (1) of 2011  and amendments thereto, Federal Decree Law No. (8) of 
2011 and amendments thereto and Decree Law No. (5) of 2017 shall be abolished. In 
addition, any provision that comes in contrary to the provisions hereof shall be 
abolished.  
2. The regulations, decisions and circulars related to the above -mentioned Federal Law (1) 
of 2011 and Federal Decree Law No. (8) of 2011  shall be applied, without prejudice to 
the provisions hereof, until the alternative regulatio ns, decisions and circulars that are 
going to replace them are issued.  
3. The Federal Entities that are excluded from application of the provisions of the above -
mentioned Federal Law (1) of 2011  and Federal Decree Law No. (8) of 2011  by the 
Cabinet shall be excluded from application of the provisions hereof until the Cabinet issues decisions to abolish them.

Article (86)  
Publication and Enforcement of the Law  
This Decree Law shall be published in the Official Gazette and shall come into force as  of the 
day following the date of its publication.  
 
Khalifa Bin Zayed Al Nahyan  
President of The United Arab Emirates  
 
Issued by Us at the Presidential Palace in Abu Dhabi:  
On: 5 Muharram 1441 H  
Corresponding to: 4 September 2019 AD