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Sunday, 28 June 2020

Egypt outlines rules to streamline public finances, austerity measures

CABINET WATCH- Cabinet outlines new rules to streamline public finances, austerity measures: State bodies will be required to immediately take measures to collect any outstanding receivables and debt repayments owed to them in previous fiscal years, according to a set of new guidelines to streamline public spending and maximize revenues approved in the weekly cabinet meeting on Thursday. The decree also requires state agencies to better plan their annual budgets, buy locally-made goods and services, and halt new credit to suppliers and new accounts to debtors with outstanding balances, the statement said without giving further details.

State bodies are also being directed to try to cut their spending as part of the bid to minimize the impact of covid-19 on the state’s coffers, according to a separate decree cabinet greenlit yesterday. The decision requires a 20% cut in spending allocations for operations that have not slowed down, and a 50% reduction in spending for all activities that have either slowed or been suspended altogether. The decision does not apply to the health and supply ministries.

Also approved in yesterday’s meeting:

  • Facemasks: A contract for the Supply Ministry to purchase 40 mn cloth face masks, with the first 12 mn batch to land before July ends followed by batches in July and August.
  • IOM: Changes to an agreement between Egypt and the International Organization for Migration that relate to the organization’s legal status in the country;
  • WFP: Two agreements between the Agriculture Ministry and the World Food Programme on food security; and

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