public finance-in-egypt-by-walied-hmad

THE PUBLIC FINANCE IN

EGYPT

Prepared by:

Walied hmad

PREPAED BY\ WALIED HMAD ASCALINI -

ASSUIT UNIVERSITY13/5/2016

CONTENTS

3/5/2016PREPAED BY\ WALIED HMAD ASCALINI -

ASSUIT UNIVERSITY2

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



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



THE STRUCTURE OF GOVERNMENT

EXPENDITURE IN EGYPT:



1. Health2. education3. general public services4. National security & defense5. Public order & safety 6. Economic affairs7. Environmental protection8. Social protection9. Recreation ,culture & religion10. Housing & community utilities


PUBLIC EXPENDITURES AS % OF TOTAL

EXPENDITURE 2014\2015(BY SECTOR)

health5%

education12%

general public services

34%

national security & defense

4%

public order & safety5%

economic affairs5%

environmental protecton

0%

social protection28%

recreation,culture & religion

4%

housing & community

utilities3%



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



PUBLIC EXPENDITURES AS % OF TOTAL

EXPENDITURE 2014\2015

(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%



wages &salaries

purchaseof

nonfinancial assets

other

subsidy,grants &social

benefits

interest ondebts

purchaseof goods &

services

2008\2009 22% 12% 8% 36% 10% 7%

2014\2015 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 2007\2008 t0 2010\2011

health education

general public services national security & defense

public order & safety economic affairs

environmental protecton social protection

recreation,culture & religion housing & community utilities



Item 2006\2007 2006\2008 2008\2009 2009\2010 2010\2011

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 nonfinancialassets

.11% .12% .12% .13% .099%


GOVERNMENT EXPENDITURE AS % OF GDP

2006\2007 2007\2008 2008\2009 2009\2010 2010\2011

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%



GROWTH IN GOVERNMENT EXPENDITURE

115 127 145 161207 212

241

340 319

470

583

692 689

864

0

100

200

300

400

500

600

700

800

900

1000

2002 2003 20042005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

In million

public expenditurePREPAED BY\ WALIED HMAD ASCALINI -


DEVELOPMENT OF INDIVIDUAL’S SHARE IN

PUBLIC EXPENDITURE

0100020003000400050006000700080009000

37544571 4650 4998

57166944

8600

2007\2008 2008\2009 2009\2010 2010\2011 2011\2012 2012\2013 2013\2014

3754 4571 4650 4998 5716 6944 8600PREPAED BY\ WALIED HMAD ASCALINI -


Sources of financing public expenditure

THREE MAJOR SOURCES

1) Taxes

2) Grants

3) Other revenue



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%

2014\2015



taxes grants other revenue

2013\2014 17.60% 3.20% 7.10%

2014\2015 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 income47%

tax on property3%

tax on goods & services

39%

tax on international

trade9%

other taxes2%

from 2007\2008 to 2010\2011


2006\2007 2007\20082008\200

92009\2010 2010\2011

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%


If taxes not enough?

PUBLIC EXPENDITURE

VERSUS

TAXES REVENUE



0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Mill

ion

of

Eg

yp

tia

n p

ou

nd

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

2006\2007

2007\2008

2008\2009

2009\2010

2010\2011

overall deficit as % ofGDP

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%

GR

OW

TH

RA

TE

IN %

As % of GDP


INTERNATIONAL

COMPARISONS



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 germany2011 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 2014\2015 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%

2014\2015

wages and salaries

other educationalexpenditure



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

161.6207.8 222

282.3

25.8 25.6 27.8 33.7

In million

GDP public expenditure academic education expenditureprepaed by\ walied hmad ascalini - assuit university 373/5/2016

STUDENT SHARE OF EXPENDITURE ON

ACADEMIC EDUCATION AS % OF GDP

23.4

53 55.8

84 89.798.2

egypt syria tunis lebanon morocco jordan

student share as % of GDP



0

5000

10000

15000

20000

25000

30000

In $

state expenditure on educationprepaed by\ walied hmad ascalini - assuit university 393/5/2016

BUDGET DEFICIT & THE SUGGESTED

POLICES



1) Increase in public expenditure growth rate2) Increase in expenditure volume for some

government agencies & organization3) Increase in the volume of current

expenditure4) Increase in interest rate paid over debts5) More dependence on t-bills6) Increase in the volume of local debts7) Inefficiency of collecting taxes

administration prepaed by\ walied hmad ascalini - assuit university 423/5/2016

1) Realizing public expenditure polices 2) Maximizing taxes revenue3) The reforms of taxes & customs

systems4) Re-structure of national economy


public finance-in-egypt-by-walied-hmad

Economy & Finance