Lawmaker: Rationalization of Public Spending Should not Affect Citizens

Dr. Hussein Issa, chairman of the Plan and Budget Committee at the House of Representatives (HoR), stressed that the procedures for rationalizing the public spending should not harm the Egyptian citizens, adding it is necessary to search for new revenues.

Dr. Issa recommends the government to concentrate on alternatives such as the economics of providing services.

This came during the committee's meeting today, in the presence of Dr. Mohamed Maait, Minister of Finance, while discussing the draft of the state budget for fiscal year 2020/2001.

Dr. Issa pointed out that all countries across the world provide the service for the cost but here in Egypt matters are not so clear, revealing that some services are fully funded by the state and others are jointly funded by the citizen and the state.

The chairman of the Plan and Budget Committee pointed out that we need a clear strategy to deal with the economics of providing services, especially since this matter may increase the public spending by an amount of no less than 250 billion pounds, affirming that Egypt is moving positively towards the financial inclusion.

On the other hand, the Corona pandemic contributed to handling the file of irregular employment, which can be used after that.

The chairman of the Plan and Budget Committee  said that Egypt still needs to search for new investment aspects, as many factories in China have moved their activities to some other countries due to the Corona pandemic.

These countries are India, Lebanon and Mexico but unfortunately, Egypt has absent from this scene.

He urged the government to focus on the file of investments, especially since the industry in Egypt has a great future, adding that there is concern among everyone about the problems facing the 2020-2021 budget, especially in light of the repercussions of the Coronavirus.

He indicated that the committee will work continuously in the coming days to clarify the plan of each ministry in light of the current crisis.

On his part, Eng. Yasser Omar, deputy-chairman of the Plan and Budget Committee in the HoR, said the lawmakers want serious movements to stem corruption alongside every law to increase fees on citizens.

Omar stressed that the Governor of the Central Bank should reduce the interest rate because of its role in supporting industry and agriculture, warning that if high interest rate still in place this will supports the competitor products.

However, Mustafa Salem, deputy-chairman of the Plan and Budget Committee in the HoR, urged fellow law makers to postpone the repayment of 50% of the loans through negotiation with donors.