Dubai's ruler approved a 2011 government budget with a deficit of AED3.778bn ($1.03bn), the government said on Wednesday, a smaller shortfall than planned for 2010.

The UAE member's spending is projected at AED33.684bn ($9.17bn) in 2011, down from AED35.401bn planned for 2010, the statement said.

Revenue of the debt-laden emirate was estimated at AED29.906bn, slightly above AED29.411bn projected for the previous year.

The budget shortfall had been set at AED5.99bn for 2010.