The government fiscal deficit was expected to reach 4.2 billion dirhams (S$1.69 billion) in a 2009 budget based on an oil price of US$45 a barrel, said Nasser al-Sheikh, director-general of Dubai's finance department

'As far as I know we have never had a deficit in Dubai before,' Mr Sheikh said.

'Operationally we are at a surplus of 3 billion dirhams but if you add investment in infrastructure, the deficit is 4.2 billion dirhams,' he said, referring to major projects such as the emirate's metro network and new airport.

Total revenues for 2009 were estimated to reach 138 billion dirhams, a 4 percent increase from 2008, Sheikh said.

Total government spending in 2009 was expected to reach 135 billion dirhams, up 11 percent from last year, Sheikh said, with 37.7 billion dirhams of that to be spent on the public sctor alone. -- THOMSON REUTERS