The increase in oil prices during the past fiscal year and the increase of subsidies programs for the poor and low-income will make the government work to add additional allocations of nearly EGP 100bn to the budget of the year, said Yasser Omar, the head of the planning and budget committee.
The government has not yet addressed the House of Representatives to add these allocations to the budget for the past fiscal year, according to Omar, saying “we are waiting for the decision to refer the government’s request during the final account discussion last year.”
The value of subsidizing petroleum products during the last fiscal year amounted to about EGP 122.4bn, which represents the difference between the cost of securing the required quantities and the selling price.
According to a statement issued by the Ministry of Petroleum in September, the cost of managing petroleum products during 2016/2017 amounted to about EGP 204.3bn, while the proceeds of selling them at subsidized prices in the domestic market amounted to EGP 81.9bn.
Omar said the government’s decision to raise the value of subsidized food supplies from EGP 21 per person to EGP 50 is a major reason for increasing the amounts the government wants to add to the final account for the last fiscal year.
Omar estimated that the cost of the decision of President Abdel Fattah Al-Sisi to increase the subsidy of the rationed individuals will cost the government budget additional burdens of nearly EGP 40bn.
He said fuel allocations during the last fiscal year initially amounted to EGP 33bn on expectations of lower oil prices, but Brent crude rose above $45, forcing the Ministry of Petroleum to request additional financial allocations during the last fiscal year.
“In addition to the fluctuations in the prices of losses on international stock exchanges and the increase in the share of individuals enrolled in ration cards, the government’s decision to liberalize the pound exchange rate at the beginning of November last year also contributed to the increase in the cost of goods imported from abroad,” said to Omar.
Daily News Egypt reported that the government had asked the House of Representatives to begin discussing the draft development law bill during the current week after being postponed twice during the last legislative term
The House’s Budget and Budget Committee has amended the government’s draft law to amend certain provisions of Law No. 147 of 1984 to impose a fee on the development of the state’s financial resources, which will move the prices of some fees, such as passports, arms licenses, foreigners, mobile services, car licenses and quarries.
“The aim of the bill is to increase the fiscal revenues of the treasury during the current fiscal year, with the government targeting a total fiscal deficit approaching 9.5% by the end of the year,” the parliamentary sources said.
The parliamentary sources expect the financial results of these amendments to reach about 6 billion pounds because of the increase in the price of services from new car licenses and annual licenses and work permits for Egyptians abroad.
Omar said that the committee received the bill of tenders and auctions from the government and will begin to discuss during the current legislative session.
