Public finance-in-egypt-by-walied-hmad

THE PUBLIC FINANCE IN
EGYPT
Prepared by:
Walied hmad
PREPAED BY WALIED HMAD ASCALINI -
ASSUIT UNIVERSITY
13/5/2016

CONTENTS
3/5/2016
ASSUIT UNIVERSITY
2
 What is government expenditure?
 Characteristics of government expenditure
 Classification of government expenditure
 Structure of government expenditure in egypt
 Sources of financing government expenditure
 government expenditure Vs taxes revenue
 International comparison
 Light on the education sector in egypt
 Budget deficit & proposed polices

WHAT IS PUBLIC EXPENDITURE?
 An amount of money used by public government to satisfy
public needs
 What is expensed by government to provide public services for
its citizens such as
• Education
• Health
• National security
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Amount of
money
Provide
public
benefit
Expensed
by public
person
prepaed by walied hmad ascalini - assuit university 43/5/2016

• Show expenditure from
economic prospective
such wages & social
benefit
• According to the
type of sector such
education sector &
health sector
CLASSIFICATION OF PUBLIC
EXPENDITURE
I. Functional classification ii. Economic classification
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THE STRUCTURE OF GOVERNMENT
EXPENDITURE IN EGYPT:
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1. Health
2. education
3. general public services
4. National security & defense
5. Public order & safety
6. Economic affairs
7. Environmental protection
8. Social protection
9. Recreation ,culture & religion
10. Housing & community utilities

PUBLIC EXPENDITURES AS % OF TOTAL
EXPENDITURE 20142015(BY SECTOR)
health
5%
education
12%
general public
services
34%
national security
& defense
4%
public order & safety
5%
economic affairs
5%
environmental
protecton
0%
social protection
28%
recreation,cultur
e & religion
4%
housing &
community
utilities
3%
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B. BY ECONOMIC CLASSIFICATION
1) Wages & salaries of employees
2) Purchases of goods & services
3) Interest on domestic & foreign debts
4) Subsidy ,grants & social benefits
5) Purchase of nonfinancial assets(investments)
6) Other expenditure
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PUBLIC EXPENDITURES AS % OF TOTAL
EXPENDITURE 20142015
(BY ECONOMIC CLASSIFICATION)
wages & salaries;
8.60%
purchase of
goods &
services;
1.40%
interest on debts;
8.30%
subsidy ,grants &
social benefits;
9.70%
purchase of non-
financial assets;
2.80%
other; 2%
Expenditure as for GDP =32.8%
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wages &
salaries
purchase
of
nonfinanci
al assets
other
subsidy,gr
ants &
social
benefits
interest on
debts
purchase
of goods &
services
20082009 22% 12% 8% 36% 10% 7%
20142015 26% 9% 6% 30% 25% 4%
22% 12% 8% 36% 10% 7%26% 9% 6% 30% 25% 4%
0%
5%
10%
15%
20%
25%
30%
35%
40%

FUNCTIONAL CLASSIFICATION OF PUBLIC
EXPENDITURE - 4 YEARS AVERAGE -
5%
12%
27%
7%
5%7%
0%
28%
4% 5%
From 20072008 t0 20102011
health education
general public services national security & defense
public order & safety economic affairs
environmental protecton social protection
recreation,culture & religion housing & community utilities
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Item 20062007 20062008 20082009 20092010 20102011
Wages &
salaries
.23% .22% .22% .23% .24%
Purchase of
goods &
services
.077% .065% .071% .077% .065%
Interest on
debts
.21% .18% .15% .20% .21%
Subsidy ,
grants & social
benefit
.26% .33% .36% .28% .31%
Other
expenditure
.096% .085% .077% .077% .078%
Purchase of
nonfinancial
assets
.11% .12% .12% .13% .099%

GOVERNMENT EXPENDITURE AS % OF GDP
20062007 20072008 20082009 20092010 20102011
29.80% 31.50% 33.70% 30.30% 29.30%
29.80%
31.50%
33.70%
30.30%
29.30%
27.00%
28.00%
29.00%
30.00%
31.00%
32.00%
33.00%
34.00%
35.00%
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GROWTH IN GOVERNMENT EXPENDITURE
115 127 145 161
207 212 241
340 319
470
583
692 689
864
0
100
200
300
400
500
600
700
800
900
1000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
In million
public expenditurePREPAED BY WALIED HMAD ASCALINI -
ASSUIT UNIVERSITY
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DEVELOPMENT OF INDIVIDUAL’S SHARE IN
PUBLIC EXPENDITURE
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
3754
4571 4650 4998
5716
6944
8600
20072008 20082009 20092010 20102011 20112012 20122013 20132014
3754 4571 4650 4998 5716 6944 8600PREPAED BY WALIED HMAD ASCALINI -
ASSUIT UNIVERSITY
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 Sources of financing public
expenditure

THREE MAJOR SOURCES
1) Taxes
2) Grants
3) Other revenue
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Property
income ( stock
& shares )
Sales of goods
& services
Compensation
& penalties
Voluntary
transfers other
than grants
Miscellaneous
& unidentified
revenue

REVENUE AS % OF GDP
other revenue;
6.70%
grants; 1%
taxes; 15.20%
20142015
ASSUIT UNIVERSITY
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taxes grants other revenue
20132014 17.60% 3.20% 7.10%
20142015 15.20% 1% 6.70%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%

tax on income
47%
tax on property
3%
tax on goods &
services
39%
tax on
international
trade
9%
other taxes
2%
from 20072008 to 20102011

20062007 20072008
2008200
9
20092010 20102011
revenue as % of GDP 24.20% 24.70% 27.10% 22.20% 19.30%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%

PUBLIC EXPENDITURE
VERSUS
TAXES REVENUE
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0
100000
200000
300000
400000
500000
600000
700000
800000
900000
MillionofEgyptianpound
2002-2014
revenue
expenditure

State budget overall deficit
-10.20%
-10.50%
-9.50%-9.60%
-8.20%
-6.70%-6.90%
-6.40%
-7.97%
-10.60%-10.70%
-9.60%
-9.90%
-12.00%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00% 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
%
2002-2014
deficit as % of GDP
prepaed by walied hmad ascalini - assuit university
29
3/5/2016

20062
007
20072
008
20082
009
20092
010
20102
011
overall deficit as % of
GDP
7.30% 6.80% 6.90% 8.10% 9.80%
revenue growth rate 19.10% 22.90% 27.60% -0.10% -1.10%
expenditure growth rate 6.80% 27.10% 24.50% 4.10% 9.80%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
GROWTHRATEIN%
As % of GDP

INTERNATIONAL
COMPARISONS
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Public expenditure as % of GDP
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
egypt america germany
29.20%
25.20%
28.60%
30.50%
24%
28.20%
2011
2012
32
3/5/2016

0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
egypt america germany
2011 4.90% 17.10% 11.20%
2012 4.90% 17% 11.30%
2013 5.10% 17.10% 11.30%
AS % OF GDP

Light on Education sector in Egypt
34
3/5/2016

 Competitive international reports
for 20142015 indicated that
Egypt is 141 (from total 144) as for
education quality
Egypt is 144 as for the quality of
school administration

EXPENDITURE OF EDUCATION SECTOR
IN 2014-2015 BUDGET
85%
15%
20142015
wages and salaries
other educational
expenditure
ASSUIT UNIVERSITY
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0
100
200
300
400
500
600
700
800
900
2004-2005 2005-2006 2006-2007 2007-2008
538.5
617.7
744.8
892.6
161.6
207.8 222
282.3
25.8 25.6 27.8 33.7
In million
GDP public expenditure academic education expenditure

STUDENT SHARE OF EXPENDITURE ON
ACADEMIC EDUCATION AS % OF GDP
23.4
53 55.8
84 89.7
98.2
egypt syria tunis lebanon morocco jordan
student share as % of GDP
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0
5000
10000
15000
20000
25000
30000
In $
state expenditure on education

BUDGET DEFICIT & THE SUGGESTED
POLICES
ASSUIT UNIVERSITY
403/5/2016

1) Increase in public expenditure growth rate
2) Increase in expenditure volume for some
government agencies & organization
3) Increase in the volume of current
expenditure
4) Increase in interest rate paid over debts
5) More dependence on t-bills
6) Increase in the volume of local debts
7) Inefficiency of collecting taxes
administrationprepaed by walied hmad ascalini - assuit university 423/5/2016

1) Realizing public expenditure polices
2) Maximizing taxes revenue
3) The reforms of taxes & customs
systems
4) Re-structure of national economy

ASSUIT UNIVERSITY
443/5/2016

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