Minister of Finance Hany Qadry Damian has admitted to Egypt’s absence from the world transparency rankings over the last three days and that the country’s transparency rates had declined to 12 points over the past year.
The minister, during a press conference on Wednesday, attributed the decline to the absence of transparency over the recent period and the lack of attention to an institutional system of work. He, however, noted that the government currently is aiming to rebuild institutions in a bid to boost its world transparency standings.
Damian noted that though the World Bank and the International Monetary Fund have their own vision for Egypt’s economy, the recent economic reforms adopted by the Egyptian government were entirely decided through a purely Egyptian political will for change.
The minister added that the Ministry of Social Solidarity had concluded drafting programs aimed at doubling the number of families benefiting from social solidarity pensions to three million, up from a current 1.5 million, all with a cost of roughly LE12 billion.
"A new system to enhance spending on, and management of, commodities, services and maintenance is being laid down," the minister said. "The amount spent for that purpose (LE25 billion) are not sufficient."
According to the closing statement, expenditure on interests went down to LE173 billion, which is less than the target LE182 billion. The minister added that revenues stood at LE453 billion.
Damian also said that the failure to implement reforms over the last year caused the absence of revenues, something he said would be achieved during the current year.
He noted that the deficit decreased to 12.6 percent, standing at LE252 billion, compared to LE240 billion during the previous year.
Damian added that administrative distraint has been lifted from delinquent petroleum companies that owe arrears to tax authorities. He said an agreement had been made with the petroleum minister to settle those payments during the current year as liquidity improved for the Egyptian General Petroleum Corporation due to energy subsidiation reforms.
Speaking of the new Suez Canal project, Damian said the project's budget currently suffers a temporary financial burden. He noted that project revenues for citizens stand at LE7-8 billion annually, but LE12 billion are to be set aside each year to pay off the original amount in order not to destabilize the budget.
Edited translation from Al-Masry Al-Youm
