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Government financial bodies suffer EGP 10bn losses - Daily News Egypt

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Government financial bodies suffer EGP 10bn losses

Financial bodies were unable to meet revenue target and fell behind by 9%.


Ministry of Finance is set to review the final draft of Egypt’s economic reform programme set to precede the acceptance of the country’s pending $4.8bn International Monetary Fund (IMF) loan. (Daily News Egypt)
Egyptian government financial bodies suffered losses of EGP 10bn during the 2012/2013 fiscal year, according to the latest report issued by the Ministry of Finance.
(DNE File Photo)

Egyptian government financial bodies suffered losses of EGP 10bn during the 2012/2013 fiscal year, according to the latest report issued by the Ministry of Finance.

The financial bodies received around EGP 3.4bn in term of financing from the government, however, their revenues registered EGP 108bn, representing only 91% of the targeted figure.

“These losses are mainly directed by the increased expenditure on wages and the increased prices of electricity and water,” said Soad Bakhaty, the head of the Central Budget Department for Economic Bodies.

Increasing minimum wage, Bakhaty said, would not necessarily result in additional net losses, since a balance could be achieved using the surplus from the application of maximum wage law to compensate.

This was supported by the financial bodies’ budget report, which showed the deficit for the National Organization for Social Insurance (NOSI) reaching EGP 1.6bn due to the increased expenditure for funds of public and private sector workers.

According to Bakhaty, there are 51 financial bodies in Egypt, which include printing presses, land and maritime ports, the Egyptian Radio and Television Union (ERTU), the General Authority for Investment (GAFI), and the Egyptian General Petrol Corporation (EGPC).

Among the loss-generating financial bodies were the ERTU, the Postal Authority, New and Renewable Energy Authority (NREA) and the Egyptian National Railways (ENR).

The losses for the Egyptian railways during the fiscal years stood at EGP 1.77bn in, with Al-Borsa reporting EGP 20m in losses in August alone. After the violence following the mid-August dispersal of the sit-ins supporting former President Mohamed Morsi, all train transportation was halted.

Later in September, the National Railways announced that partial railway activity will resume Saturday following a complete 45 day suspension.

The report also illustrated that the government offered EGP 128.25bn in terms of financial support to the EGPC during the past fiscal year, while the General Authority for Supply Commodities (GASC) received EGP 33.7bn.

Other bodies that received financial support were the NOSI, which received EGP 15.9bn.

“According to law no. 53 of the general budget, the losses made by these bodies don’t reflect on the on Egypt’s budget,” Bakhaty added.

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https://dailyfeed.dailynewsegypt.com/2013/11/20/government-financial-bodies-suffer-egp-10bn-losses/
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