Page 406 - UAE Truncal States_Neat

The Formation of the Federation
awaited. At times I he task of amending the existing version or
drafting the permanent constitution has been given much attention
by the federal authorities; to this end a joint committee of ministers
and members of the National Assembly was formed. In July 1976 the
Supreme Council was presented with the draft of a permanent
constitution, but decided lo extend the federation’s provisional
constitution for a further five years from December 1976. It had
become obvious that such a fundamental revision could unneces­
sarily undo or bring into doubt many of the compromises on which
the federation was based. Thus, rather than prematurely enact
unsustainable constitutional changes, it was deemed preferable to
continue for the time being with the compromises which had proved
their worth during the initial years of the federation.

The main supporting elements of the federation
The financial base
Over the ten years of its existence the stability of the federal
structure has been enhanced by three main factors: firstly financial
security, secondly a successful foreign policy, and thirdly the gradual
shift of the balance between local and central administration.
Of the seven member Emirates of the UAE, three produce oil. but
Abu Dhabi is by far the most important bread-winner in the family.
In 1972, when the first federal budget, amounting to Dh.200.9 million,
was announced, Abu Dhabi’s revenues had reached Dh.2,180.8
million. In this budget the pattern was set, at least for the first five-
year duration of the provisional constitution, that Abu Dhabi’s
contribution provided over 90 per cent of the federal government’s
financial resources. Even after Dubai agreed to contribute more than
previously to the federal government’s budget from 1977 onwards,
Abu Dhabi remained the financier of the Federation in more than one
respect.
The federal budget figure was doubled for 1973 to Dh.419.8 million,
and reached a peak of Dh.13,166.7 million in 1977.140 Expenditure,
however, never came near the budgeted figures; thus at the end of
each year considerable surplus funds remained, reaching Dh.591.4
million (or one fifth of the budget) in 1976. Because Abu Dhabi’s
contribution, made available to the federal financial authorities, is
disbursed only as and when the various ministries' expenditure is
incurred, actual federal revenues have also fallen short of the
originally budgeted figures. In 1977 the total federal revenue was
379