Essay on Fiscal Transparency of United Arab Emirates

Essay on Fiscal Transparency of United Arab Emirates

Introduction

Fiscal transparency defined as the reliability, frequency, clarity, timeless and relevance of fiscal reporting and openness to the public. The government’s fiscal policy creation process is an important element of managing fiscal policies effectively. Fiscal policy transparency assists governments to ensure informed economic decisions made, and accurate assessments of present fiscal positions. It guides in effective assessments of costs, policy changes and potential risks of the fiscal outlook.[1]

Fiscal transparency provides legislatures, market stakeholders and a nation’s citizen in making efficient financial choices. It empowers respective stakeholders to hold their governments accountable for their fiscal performance and utilization a nation’s resources. Finally, this transparency facilitates international supervision of fiscal developments and guides mitigation of fiscal spillovers among countries.[2]

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Clear roles and responsibilities

This section discusses fiscal transparency principles and practices that concern the scope and fiscal management framework of a government. They are crucial for assigning accountability to the design and implementation of various fiscal policies. The identification of government entities that provides goods and services to the public, thereby, empowering the public domain to understand the true scope of their governments. Such is because; clear roles and responsibilities assigned through legal and administrative frameworks that ensure a governments use and collection of the public’sresources are met with accountability and good governance[3].

The government sector should differentiate the public sector and the rest of the economy and policy management roles concerning the public should be clear and effectively disclosed. With the adaptation of the code of Good practices on fiscal transparency, the United Arab Emirates have safeguarded their implementation. This proven through adoption of good practices regarding governmental structures and functions, executive legislative and judicial roles of the government branches; responsibilities of distinguished government levels; generated relationships among government agencies and public corporations; finally governments participation and involvement in the private sector.

The adoptions of these principles within the emirate states ensure; published institutional tables that clearly identify the structure of the government and public sectors. In addition, the various levels of government and corporations held publically. They explain all quasi-fiscal activities, lastly, give clear assignments of revenues and responsibilities to all distinguished government levels.

Government structures and functions must be clear means; the public sector is made up of the general government and public organizations. The two types of public corporations entail financial corporations such as the central bank and other nonmonetary financial firms and non-financial public organizations. Through the separation of government functions from monetary and commercial practises.it provides room for to establish accountability.

For examples in the United Arab Emirates, identification of some government entities is somewhat difficult. This is because there may be entities with separate legal identities and autonomy from the executive thereby leading to the discretion of their expenditures and sources of revenue via earmarked transfers. Such entities are non-market and profit institutions that should entirely be include in the operations of the government.

Fiscal powers and roles of the executive, legislative and judicial branches within the Arab states are underway if not already clearly defined. With the adoption and utilization of guidelines of the Code, all government branches entitled to fiscal management should be well defined. This is because relationships amongst different branches of government vary and are often face changes with the development of political and administrative systems. Recent studies echoed this through illustrations of the importance and influence budget organizations have on fiscal outcomes. For example, the executive arm given the objective to conduct fiscal policy for budget within a given fiscal year, but the budget yet adopted by the legislat