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Monday, 30 May 2016

FY2016-17 budget revisited to abide by constitutional requirements

This was always going to create practical problems for the government: The Finance Ministry is currently revising its proposed budget for FY2016-17, Minister Amr El Garhy told Al Mal. The constitution necessitates that the government’s combined spending on health and education be at least equivalent to 10% of GDP and under the preliminary proposal, it was just 4.7%, Al Mal says. El Garhy says one of the reasons the health and education provisions were set at such a low rate is due to concerns over the sectors’ capacity to efficiently absorb the funding. The constitution has set an arbitrary minimum threshold for government spending on certain sectors, including health and education.

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