* Dubai 2010 gap 6 bln dirhams vs 4.2 bln set for 2009
* Revenues set at 29.4 bln dirhams, expenditure at 35.4 bln
DUBAI, Jan 7 (Reuters) - Dubai's ruler approved the Gulf emirate's 2010 budget with a deficit of 2 percent of gross domestic product, deeper than last year and in line with a budget committee's proposal, the government said on Thursday.
Dubai, a member of the United Arab Emirates federation, received a last-minute bailout from fellow emirate Abu Dhabi last month to avoid a default on billions of dollars worth of debt of one of its flagship companies.
"The general budget of the government of Dubai represents a balance between necessities of supporting and stimulating the economy on one side and committing to financial rules and sound principles of managing public funds on the other," Dubai finance department chief Abdulrahman al-Saleh was quoted as saying in a government statement sent to Reuters by a banking source.
Saleh declined to comment on figures when contacted by Reuters.
The 2010 budget gap is projected at 6 billion dirhams ($1.63 billion), up from a 4.2 billion gap envisaged for 2009, the statement said. The government revenues are projected to reach 29.4 billion dirhams, while expenditure stands at 35.4 billion.
The 2010 investment spending is set at 10.7 billion dirhams, which accounts for 30 percent of total expenditures.
Dubai had forecast its first ever deficit for its 2009 budget at 1.3 percent of the emirate's 2007 GDP. The final 2009 data are not available. The emirate is trying to keep its budget gap below 3 percent of GDP.
The emirate, facing a debt pile estimated at $80 billion, has ordered government departments to transfer all revenues to the treasury in a move to better control financial flows.
Analysts have said tax-free Dubai might consider selling its assets to boost revenues as well as raise fees and charges or introduce more paid-for services similar to its road toll system.
Dubai has received a $10 billion dollar lifeline from Abu Dhabi to repay a $4.1 billion bond for Nakheel, a property arm of its debt-laden Dubai World, and other obligations.
State-owned Dubai World is still to negotiate a standstill deal on $22 billion worth of debt with its creditors.
The UAE federation and Abu Dhabi banks provided Dubai, known for ambitious projects, with overall financial aid worth $25 billion this year. (Reporting by Rania Oteify and Raissa Kasolowsky, writing by Martin Dokoupil, editing by Stephen Nisbet)