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Wednesday, 21 June 2017

FEP back FY2017-18 budget

The Misryoon Al Ahrar Party (FEP) has backed the 2017-18 state budget. That’s the highlight of the shockingly poor (and paltry) coverage of the budget debate at the House of Representatives yesterday. FEP announced yesterday that its bloc in the House will vote in favour of the new budget, according to Ahram Gate. The House was due to kick off its budget debate yesterday, but the only coverage of the story to emerge overnight was a piece in Al Masry Al Youm claiming MPs from the House Health Committee were demanding that the government increase its earmark for health spending.

One thing we can confirm: The House approved yesterday its own EGP 1.1 bn operating budget for the new year, up from EGP 997 mn last year, Al Mal says.

What else did the House get up to yesterday? MPs signed off on a draft bill proposed by the Ismail government that would direct a percentage of ministerial special revenue funds (often described as slush funds) into the state budget process, primarily to help remedy the budget deficit, Al Shorouk reports. The percentage deducted will vary depending on account size and value, according to Finance Minister Amr El Garhy, who said that state coffers will claim 1% of accounts holding EGP 20-30 mn, 5% from accounts holding EGP 30-50 mn, and 15% from accounts holding anything north of EGP 100 mn. The bill excludes a number of funds, including those for research, university hospitals, social welfare, housing, healthcare, and funds from international donors.

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