Dubai is currently preparing a medium term budget plan for 2011-2013, a finance department official said, adding the government departments are looking to cut costs and expenses without affecting the quality of services.
One of Dubai's largest government-owned conglomerates, Dubai World, announced last year that it was in need of a freeze on about $26 billion of debt leading to market turmoil across the global financial markets.
Dubai has been hit hard by a real estate slump and its debt has prompted bailouts by oil-rich UAE's capital city of Abu Dhabi.
In January, the emirate's government said its 2010 budget revenue would total 29.4 billion dirhams ($8 billion, down 12 per cent from last year's estimate of 33.5 billion dirhams ($9.11 billion).
The government's expenditure is expected to be 6.1 per cent lower than the figure envisaged for 2009 at 35.4 billion ($9.63 billion). Dubai had forecast its first ever deficit for its 2009 budget at 1.3 per cent of its 2007 GDP.