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DUBAI / WAM
The Ministry of Finance (MoF) announced the launch of the Federal Automated Revenue Estimation System (FARES) as part of its strategy to further enhance government operations in order to advance digital transformation in the country.
The system will automate ministry’s revenue estimations model and further improve integration of data to calculate estimates based on statistical and accounting standards.
Saeed Rashid Al Yateem, Assistant Undersecretary of Resource and Budget Sector, pointed out the importance of FARES, which coincides with the revenue cycle of 2022-2026. The Ministry of Finance is preparing for the next cycle with the end of the current one being at the end of 2021.
Al Yateem reaffirmed the ministry’s efforts to enhance financial technologies and launch new digital initiatives that bolster the UAE Vision 2021, as well as the goals of the UAE Artificial Intelligence Strategy 2031.
He said, “MoF embraces the latest technological solutions, including AI to prepare for the Fourth Industrial Revolution. We are on course to digitise the government’s financial operations in line with highest international standards.”
The new system affords federal ministries and government bodies several advantages, including a unified window to link all relevant data between the federal financial system and the e-dirham system. This facilitates decision-making and enhances efficiency by providing data from a unified and verified sources. It also calculates estimates based on accurate statistical and accounting principles, and in accordance with international best practices.
The system also links the revenue estimation system and the federal budget system, and extracts reports through a unified system, making it easier for the user to compare actual and historical revenue data.
The FARES system is based on estimated transactions, which reflect economic activity of government services. It also allows users to assess the influence economic drivers such as GDP, inflation, labour market index, and more.
Furthermore, users can also extract revenue data and key metadata, including service codes, service prices, and historical and actual service transaction volumes by ministry and service location from the e-dirham system to provide a monthly revenue estimate.
The Ministry of Finance held workshops for federal entities specialists in December 2019, ahead of the system’s launch. The second workshop was held in February 2020, where the final version of the system was unveiled, and was followed by training for relevant authorities.