First day of budget debate in House committee goes smoothly
The first day of budget discussions at the House was fairly smooth: Discussion at the House Budget Committee of the FY2017-18 state budget kicked off yesterday and went reasonably smoothly apart from the expected griping about inflation. That’s building toward resistance to hiking energy prices this summer on concerns about what that would do to consumers, according to Al Shorouk.
El Garhy briefed MPs on the state’s “special revenue funds” which members of the House have been trying to link to state coffers via legislation. The cumulative value of the funds or “special accounts” currently stands at EGP 33 bn, El Garhy said according to Youm7. The minister dismissed rumors suggesting that the accounts — which are subject to little oversight, are funded through channels separate from the normal budget process, and can reportedly be deployed at a minister’s request — hold more than EGP 600 bn. Members of the House Economics Committee have reportedly written Prime Minister Sherif Ismail to ask that the government present MPs with detailed reports on the special accounts, according to Al Mal.
Finance Minister Amr El Garhy reportedly declined to answer MPs’ questions about plans for energy price hikes in the new budget,but committee members said they plan on meeting with Petroleum Minister Tarek El Molla sometime in the next few days in a bid to postpone in the short term any energy price hikes, according to Al Borsa.
Separately, cabinet is reportedly set to receive plans for new electricity prices this week. The Electricity Ministry will send multiple scenarios for a proposed July price hikes to Cabinet this week, an unnamed ministry official tells Al Shorouk. The tariff increases will not be steep, and will hardly be felt by lower-income citizens, Electricity Minister Mohamed Shaker tells the newspaper. However, Shaker reaffirmed that the hikes are coming, and that failing to raise prices come July would cost state coffers some EGP 60 bn. The phase-out of subsidies will be implemented gradually over a period of five to seven years to avoid burdening the average citizen, the minister said, reiterating a long-standing government talking point.