Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Egypt ……The Way To Transparency Pre-Budget Statement for the state budget Citizen Budget Know Your State Budget of FY 2015/2016 for FY 2014/2015 Citizen Budget Know Your State Budget for FY 2015/2016 1 Table of Contents I. Ministry of Finance Mission and Responsibilities II. Vision & Medium Term Macroeconomic Targets III. Challenges IV. Economic and Fiscal proposed policies V. Enhancing transparency and Strengthening Public Participation MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 2 MOF Responsibilities Taxes MoF Mission Statement (Fiscal Stability, Economic Growth and Social Justice) Health, Education, Infrastructure, Housing, Transportation and Social Packages Citizen Manages Public funds and allocates them among citizens needs and Plans and Prepares Egypt’s priorities budget and Public Domestic Debt P.S. The government aims at setting a program-based budgeting framework and this will improve monitoring and evaluation. Ministry of Finance - Macro Fiscal Policy Unit Design fiscal policy in line with macroeconomic framework 3 Egypt Vision ...Investing in Egypt’s human capital The government of Egypt is designing Sound Economic Policies for social inclusive and sustainable environmentally market economies. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 4 In the past fiscal year, Egypt was confronted with a triple deficit GDP DECILNE EXTERNAL DEFICIT Real Annual GDP Growth FISCAL DEFICIT Current Account Deficit excluding remittances and grants 4.7% 2008/2009 -12.7 2008/2009 -2.5pp excluding commodity grants 12.4 (7%) US$Bn US$Bn (% of GDP) 2008/2009 +20Bn +8.8pp 44.2 2.2% -32.7 (15.8%) 2013/2014 2013/2014 2013/2014 Unemployment Rate 9.4% 2008/2009 Budget Deficit Foreign Reserves 31.3 2008/2009 +4.9pp Domestic Debt 644 (62%) US$Bn 14.6B n EGPBn (% of GDP) 2008/2009 +23pp 13.3% 16.7 1700 (85%) 2013/2014 2013/2014 2013/2014 Source: Ministry of Finance, CAPMAS, Central Bank of Egypt 5 Economic and Fiscal proposed policies Egypt’s economic development strategy rests on three building blocks 6 Quantitative targets and underlying assumptions in the 2015/2016 budget over the medium term MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 7 The most important financial challenges we face… Egypt’s Path into a Virtuous Circle... 8 Economic and Fiscal proposed policies A gradual phasing out of energy subsidies Introduction of smart cards for gas and fuel distribution Wage-bill reforms to contain public sector wages Savings generated by both revenue and expenditure measures will be rechanneled to bolster social protection programs and to help meet the constitutional mandate requiring the government to spend 10% of GDP on health, education and research and development (R&D) by FY 2016/17 9 Why Restructuring Subsidies ? Facing problems to finance Amount of Fuel Subsidies received by the Wealthiest 20% of Society 90% 80.1% 80% energy products. 70% 59.2% 60% Most of the energy subsidies goes to segments. the upper income 50% 38.1% 40% 30% 22.3% 19.0% 20% 10% 0% Gasoline MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT Natural Gas Electricity LPG Kerosene 10 Increasing Expenditure on Health and Education as Mandated by January 2014 Constitution In FY14/15 budget public expenditure on health and education increased relative to expenditure on energy subsidies Expenditure on Health and Education exceeds Expenditure on Energy Subsidies (Electricity and Petroleum Materials) in FY14/15 Expenditure on Energy Subsidies (Electricity and Petroleum Materials) exceeds Expenditure on Health and Education in FY12/13 180 180 160 160 140 140 Petroleum Subsidies, 120.0 100 80 Expenditure on Education, 73.1 (20.4%) 120 LE Billion LE Billion 120 (13.3%) Petroleum Subsidies, 100.3 80 60 (12.4%) 40 0 100 (12.7%) 60 20 Expenditure on Education, 105.3 Expenditure on Health, 31.6 (5.4%) Electricity Subsidies, 8.6 40 Expenditure on Health, 51.6 20 (6.5%) (1.5%) Electricity Subsidies, 27.2 (3.5%) 0 MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 11 The government is promoting an investment program targeting the sectors with the highest potential. Energy/ Mining Housing/ Utilities Agriculture Tourism Industry Transportation/ Logistics ICT Mix of mega-projects and initiatives with high social returns Medium term growth target: 6% OBJECTIVES Improve the living conditions of the people Promote quick job creation through the development of labor intensive sectors Address Egypt’s widening infrastructure/energy gap and reduce power and water shortages Initiate a move toward more diversified and high value added exports The most important financial challenges (continued) Increased government spending on health, education and scientific research is essential to invest in human development. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 13 Strengthening Public Participation The Ministry of Finance believes that transparency, disclosure and the dissemination of reliable information is a crucial element in the ongoing dialogue with the public , who has the right to comprehensive, and useful information on how the government will manage the generated public funds and net savings by the aforementioned reforms. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 14 Strengthening Public Participation The community outreach strategy is grounded on three main Aspects : I. Effective promotion of the reform measures undertaken by the Ministry of Finance. II. Ongoing dialogue of current issues (indirect defense). III. Developing a mechanism to survey citizens’ reactions (monitoring feedbacks). MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 15 Strengthening Public Participation The importance of informing citizens on the reform measures taken by the ministry and about the general role of the Ministry of Finance? I. Communication and transparency will encourage citizens to bear the burden of reform policies and fiscal consolidation. II. Highlighting the importance of the role played by the Ministry of Finance in devising the fiscal policy framework. III. Rebuilding citizens’ trust in the performance of both the government and the Ministry of Finance. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 16 Strengthening Public Participation Serious steps were undertaken on the way to budget transparency to inform the general opinion about the reasons behind bold structural reforms. First, MOF was very keen on releasing the “Citizen’s Budget” in October 2014 , which is a simplified form of the 2014/2015 state budget to be easily understood by ordinary citizens. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 17 Strengthening Public Participation Citizen budget initiative offers citizens at large an opportunity to learn about government operations and to deliberate, debate, and influence the allocation of public resources in the future. Citizen Budget Objectives (Raising public awareness and transparency) Tools of communication – The availability of citizen budget at the website (www.budget.gov.eg) , aims to encourage citizen's participation in the decision making process. – Facebook, Twitter, The Ministry Blog – The Financial Monthly Bulletin MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 18 Strengthening Public Participation (continued) Moreover, MOF launched an interactive website that displays the budget outline and the main measures adopted by the government. http://www.budget.gov.eg/ Additionally, a simplified onepage brochure ‘handout’ was distributed with the newspapers to explain the major outline of the budget. Ministry of Finance - Macro Fiscal Policy Unit موازنة المواطن مع بعض نكمل المشوار 2016/2015 لعام 19 Strengthening Public Participation (continued) In order to make the budgetary process more transparent, inclusive and responsive and to welcome feedback from all key stakeholders, the Ministry of Finance organized a one-day workshop to gather representatives of the government, academia, civil society, the business community and the media. The purpose of the event was to discuss the economic and fiscal challenges underlying the formulation of the FY 2015/2016 budget, as well as the assumptions and targets on which the budget is based. Ministry of Finance - Macro Fiscal Policy Unit 20 MOF future Initiative to improve public participation in the budget process. MOF is in the process of providing a comprehensive sets of fiscal data in a simplified and user friendly wayto Civil Society, NGOs, Political Parties and the Public via BOOST tool sponsored by the World Bank. Providing training to citizens, CSOs, journalists, and university students on public finance and public financial management principles and most recent economic policies, to enhance the public awareness. Develop mechanisms for participatory budgeting (to include monitoring and evaluation of participation, performance & impacts of selected projects & of participation tools). Applying Programme Based budgeting. MINISTRY OF FINANCE - MACRO FISCAL POLICY UNIT 21 Strengthening Public Participation (continued) Moreover, MOF launched Citizen Budget FY 2015-2016 for the second consecutive year on the 29th of September 2015 entitled "Hand in Hand, We Complete the Journey" to inform citizens about key features of the 15/16 budget and shed light on the planned fiscal policies to be implemented in the medium and long term. Ministry of Finance - Macro Fiscal Policy Unit 22 Strengthening Public Participation (continued) In addition, the Ministry of Finance organized a one-day workshop(as the second event in a series of workshops) divided into three main topics, which are: Growth& Employment Fiscal reforms Social protection(GASC& Solidarity and dignity & healthcare for disabled) This workshop gathered representatives from the government, academia, civil society, the business community and the media to encourage citizens' participation in the decisionmaking process, and to discuss the assumptions, targets, along with the economic and fiscal challenges underlying the preparation of the FY 2015/2016 budget. Ministry of Finance - Macro Fiscal Policy Unit 23 Strengthening Public Participation (continued) Additionally, simplified Budget a Citizen Booklet targeted for children was distributed to explain the budget. Ministry of Finance - Macro Fiscal Policy Unit 24