Egypt's parliament approves LE 65B additional allocation in 2022/23 general budget

CAIRO – 20 March 2023: Egyptian parliament approved on Monday a new draft law introducing an additional allocation worth LE 165 billion in the state’s general budget for the fiscal year 2022l2023.

 

The new allocation will be divided as follows: LE 10 billion for wages and compensations, LE 85 billion for interests, LE 70 billion for subsidies, grants and social benefits

 

According to the draft law, the new allocation will be covered by borrowing, issuing securities, stocks and other sources of local and foreign financing.

 

Article 124 of the Egyptian constitution stipulates that the state's general budget must include all of its revenues and expenditures, which are presented in front of the parliament at least 90 days prior to the start of the new fiscal year.

 

The parliament has the authority to make amendments to any clause –except for those fulfilling financial obligations on the state-, if said amendments result in increasing the overall expenditures, the parliament, along with the government, are ought to provide new revenue streams to maintain a balanced budget.

 

According to article 127 of the Egyptian constitution, the executive authority is prohibited from borrowing, obtaining funds or engaging in projects that are not included in the approved general budget, which entails withdrawing resources from the state’s public treasury, unless its approved first by the Egyptian parliament.