The UAE government has successfully disbursed allowances to 47,300 Emirati families falling into the low-income groups to curb inflation and rising costs incurred for water, electricity, fuel, and food. The Ministry of Community Development announced this novel social support scheme recently as an integral part of its latest developments for disbursing inflation allowances to families with limited income in the UAE.
Kavan Choksi– the salient features of the new Program
According to business and finance expert Kavan Choksi, these allowances for inflation are a subsidy on behalf of the Government given to Emirati families falling in the low income- bracket to manage the rise in costs taking place across the globe for essential commodities, fuel, water, and electricity.
This Program comprises three kinds of allowances for families, and they are water, electricity, and food subsidies. Last month, the President of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan issued directions for restructuring this social support program for citizens falling in the low-income bracket after doubling the budget for the above goal from 14 billion dirhams to 28 billion dirhams.
What does the programme offer?
This programme launched new allocations for university education, housing, and citizens over the age of 45 with no employment. It introduced subsidies for water, electricity, food, and fuel. Government sources claim that the allocation of the above allowances rises from the keenness of the authorities to give citizens with a poor source of income the right to a decent livelihood across the nation.
The ministry states that since the middle of July, it began approving this disbursement of allowances for fuel to people of low-income groups eligible for the programme. It started disbursing the funding for food subsidies from the 5th of August, and budgets for water and electricity are soon to follow suit.
In a statement recently released by the ministry, these funds will benefit families from low-income groups across the UAE, and they are entitled to all these inflation allowances only.
Subsidy for fuel
This programme offers a subsidy of 85% of the fuel cost increase by over 2.1 dirhams per litre every month. The head of every family gets a grant of 300 litres every month, whereas the working wife receives an extra donation of 200 litres each month. On the other hand, the head of the family will get 400 litres if the wife does not get support. The family needs to present their Emirates ID at the Adnoc fuel station in the region where the family can use the bonus value that is due during the whole month.
According to business expert Kavan Choksi, when it comes to the allowance for food, the Government bears 75% of the food costs due to inflation. Its goal here is to offer a commitment to Emirati families from low-income brackets to meet their standard of living needs and offer them a decent life.
Whereas the programme for social welfare gives them a subsidy of 50% of electricity consumption that is less than 4,000 KW every month and a water consumption subsidy of 50% that falls below 26,000 gallons.