Social Democratic Party rejects state budget record, cites ‘excessive foreign borrowing’ – Politics – Egypt


Egyptian parliament file photo (Ahram)

“The balance sheet of this budget, which was approved by the House of Representatives on Tuesday, was rejected and voted on by the deputies of our party,” El-Biaddi said.

El-Biaddi said the 2020/21 budget record showed the government was heavily involved in “foreign borrowing”.

“What is much worse is that reports published by watchdog institutions show that large amounts of foreign loans were not used effectively or were a matter of corrupt practices,” El-Biaddi said.

Figures released Monday by the Central Bank of Egypt (CBE) show that Egypt’s external debt rose to $145.5 billion at the end of the second quarter of the current fiscal year, from $137.4 billion. dollars at the end of the same period of the 2020/19 financial year. .

CBE figures show that the bulk of Egypt’s external debt – $132.7 billion out of a total of $145.5 billion – is long-term, compared to $125.9 billion in the during the same period of the 2020/19 financial year.

As for Egypt’s short-term lending, CBE figures show it reached $12.8 billion at the end of the second quarter of fiscal year 2021/20, up from $11.480 billion during the same period of the 2020/19 financial year.

Finance Minister Moahmed Maait told MPs on Tuesday that Prime Minister Mostafa Madbouly’s government had formed a committee to study the issue of foreign borrowing and limit it to very narrow limits.

“The committee will be headed by Planning and Economic Development Minister Hala El-Said and will ensure that foreign borrowing is directed only towards spending on strategic national projects,” Maait said.

El-Biaddi also said that “the government report on the 2020/21 budget contained a lot of incorrect figures and statistics”.

“For example, the report claims that total expenditure on social protection programs and subsidies increased by more than EGP 1.8 billion than originally budgeted to reach a total of EGP 338.9 billion. of EGP,” El-Biaddi said, adding that “it is good that the government allocates larger allocations to social programs and subsidies, but reports submitted by watchdog institutions such as the Central audit agree that actual spending on social programs and subsidies under the 2020/21 budget had already decreased by 20% to just EGP 263.9 billion.”

El-Biaddi also said that “many other figures cited by the report on education and health sector spending in the 2020/21 budget contradict the figures cited by oversight and monitoring institutions.”

El-Biaddi explained that the 2020/21 budget report shows that the government’s decision to devalue the Egyptian pound to achieve an economic reform program with the IMF has had a negative impact on the lives of millions of poor citizens, low and middle income.

“The government promised the poor citizens that it would compensate them, but nothing happened and what is much worse is that it again resorted to the devaluation of the pound last month to borrow from back to the IMF and that it would again come at the expense of poor and limited-income citizens,” El-Biaddi said.

Short link:


About Author

Comments are closed.