Egypt issues new resolution to rationalize spending amid economic crisis
Updated 1/9/2023 12:00:00 PM
Arab Finance: Egyptian Prime Minister Mostafa Madbouly issued Resolution No. 69 of 2023 regarding the rationalization of spending to combat the current economic crisis, according to the issue No. 52 bis (d) of the Official Gazette published on January 4th.
The provisions of this resolution will apply to all entities included in the state's general budget such as administrative apparatus, local administration, public service authorities, and public economic authorities.
This decision is effective until the end of the fiscal year (FY) 2022/2023.
This resolution will not be applicable to the purchase of non-financial assets such as investments and similar uses in the budgets of public economic bodies in which decisions are based on a proposal from the Ministry of Planning and Economic Development.
Regarding dealing in foreign exchange, the approval of the Ministry of Finance is required to authorize the exchange of the foreign component on any of the aspects of exchange, after coordinating with the Central Bank of Egypt (CBE) and the relevant authorities in this regard.
The resolution also addressed postponing the implementation of any new projects that have not been started and have a clear dollar component, in addition to postponing spending on any non-urgent needs.
It also stipulates the rationalization of all travel activities outside the country except for extreme necessity and after obtaining the approval of the Prime Minister, or if the inviting party bears all the costs of travel.
In this regard, the Minister of Finance shall submit a report every two months to Prime Minister on the extent of the commitment of the addressees to implement the provisions of this decree and the results of its implementation.
The Minister of Finance shall also issue the necessary rules to implement the provisions of this resolution.
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