Egypt's finance ministry implements Unified General Finance Law through executive regulations

CAIRO- 26 February 2024: In a significant move to enhance financial discipline and optimize the utilization of Egypt's resources, the Minister of Finance, Mohamed Maait, has issued the executive regulations of the Unified General Finance Law. 

 

The new regulations aim to govern funds and private accounts while complementing efforts to establish a robust framework for preparing, implementing, and monitoring the state's general budget and economic entities.

 

According to a statement released by the Ministry of Finance, the executive regulations of the Unified General Finance Law strictly prohibit the establishment of any private funds or accounts unless authorized by a law issued by the House of Representatives, based on a request and presentation from the government.

 

The executive regulations encompass comprehensive requirements, foundations, and procedures for the preparation and implementation of the state's general budget and economic entities. Administrative agencies are now mandated to follow budgeting programs and performance-based guidelines, including budgeting sections and items.

 

One of the significant additions in the executive regulations is the introduction of procedures and rules for preparing the medium-term budget framework, which was introduced by the Finance Law. Under this framework, each ministry is required to develop a vision for its budget and identify its needs for the next three years, aligning them with the strategic objectives.

 

Earlier in February, the Egyptian Cabinet approved amendments to certain provisions of the Unified General Finance Law. The proposed amendments, now referred to the House of Representatives for discussion, aim to establish the "general government budget," ensuring the principle of comprehensive budgeting is upheld. This budget will encompass not only the state's overall budget but also the budgets of 59 economic entities, covering both revenues and expenditures.

 

The implementation of the Unified General Finance Law's executive regulations marks a significant step toward achieving financial discipline and maximizing the efficient use of Egypt's resources. By streamlining budgeting processes, aligning them with performance-based objectives, and curbing unauthorized private funds or accounts, the government aims to enhance transparency, accountability, and the overall economic well-being of the country.