Today, Monday, the Official Gazette published Prime Minister Dr. Mostafa Madbouly’s Resolution No. 241 of 2024 regarding controls for rationalizing investment spending by entities included in the state’s general budget and public economic bodies in light of the current economic crisis.
The Gazette indicated The official statement indicated that the Prime Minister’s decision came after reviewing the constitution; And the Unified Public Finance Law promulgated by Law No. 6 of 2022, and Law No. 91 of 2023 approving the state’s general budget for the fiscal year 2023-2024, and Law No. 92 of 2024 approving the economic and social development plan for the fiscal year 2023-2024, and the laws approving the budgets of agencies The economic general year for the fiscal year 2023-2024.
The decision also came after reviewing the Prime Minister’s Resolution No. 4499 of 2023 regarding the rationalization of public spending by the entities included in the state’s general budget and the economic public bodies in light of the current economic crisis, and in light of the It was decided by the Council of Ministers at its 265th session held on November 22, 2023, based on what was presented by the Minister of Planning and Economic Development and after the approval of the Council of Ministers.
The first article of the decision included that “the economic development plan for the year shall be worked on rationalizing investment spending for the year.” For the fiscal year 2023-2024, the entities included in the state’s general budget and the public economic bodies in light of the current economic crisis are subject to the controls accompanying this decision, until the end of the fiscal year 2023-2024.
The second article states that “the exception shall be The provisions of this decision are approved by the Prime Minister based on the presentation of the Ministry of Planning and Economic Development after its study of the necessary and urgent justifications that it presents to the parties addressed by its provisions. :
1- Public treasury financing will be reduced according to the investment plan for the fiscal year 2023-2024 held on November 22, 2023, taking into account the following exception: entities whose availability rate exceeded 50% in accordance with the executive measures that were taken before. Ministry of Planning and Economic Development, in implementation of the decision of the Council of Ministers issued at its 265th session held on November 22, 2023 (Ministry of Interior and its affiliated agencies, Ministry of Defense and its affiliated agencies, Ministry of Health and Population).
2- Postponing the implementation of projects newly included in the plan. During the previous year or the current year, by prohibiting the conclusion of any contracts on these projects, whether by direct order or public tenders, until June 30, 2024.
3- Not contracting to purchase passenger cars until June 30, 2024.4- Not starting any new projects in the current year, and giving priority to completing projects that are close to completion (70% or more) and expected to be completed during the fiscal year 2022-2023, with emphasis on the pillars of the 2023-2024 plan, especially the focus On the necessary and urgent investment needs alone, in light of the commitment to the presidential directives and the directives of the Council of Ministers to rationalize spending, reduce the external debt ceiling, and encourage the local product and national industry.
5- Not contracting for any external financing or starting any project even from Through a local component that results in a loan or an additional foreign component.