Analytical Statement of The State General Budget Draft For ...mof.gov.eg/MOFGallerySource/English/The Analytical... · -1- Introduction The financial statement of state' general budget

Arab Republic of Egypt

Analytical Statement of

The State General Budget Draft For FY. 2009 / 2010

May 2009

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Contents of

The Analytical Statement Of

The State General Budget Draft For the Financial Year 2008/2009

Page No. Introduction ………………………………………………… 1 Section I Chapter I :

Economic and social framework governing General Budget Draft ................................................................. A - Economic framework of the general budget draft ......B - Social framework of the draft budget ...................

4

4

23

Chapter II : Total Core Estimates of General Budget's Uses and Resources .................................... A – Total Equilibriums between Budget Uses & Resources .................................. B – General Budget Uses ............................. C - Resources of General Budget .......................................

27 30 32 35

Chapter III :

Detailed Estimates of State's General Budget's Expenses and Revenues According to the Economic Classification.. A – Overall Picture of State’s General Budget ................. B - Detailed Presentation and Analysis of General Budget Expenditures Chapters and Main Components ... C - Detailed View and Analysis of General Budget Revenues Chapters and Main Components …………..

39 40 42 61

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70 Section II :

Statistical Supplements of the of State General Budget Draft for FY. 2009/2010 ...................................................

71 First Supplement: Detailed Distribution of Expenditures and revenues of

general budget in accordance with economic classification of the state activities …………….………..

90 Second Supplement: Detailed Distribution of Expenditures and revenues of

general budget in accordance with administrative classification ………………………………………..

121 Third Supplement: Major components of functional classification …………..

128 Fourth Supplement: Expenses by functional classification ..................................

163 Fifth Supplement: Features of application of budget responding to gender

in the of state general budget draft …….………………..

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Tables

Statement Table No. Page No.

GDP's Quarter Growth Rates

(1) 12

Major Economic Indicator in Medium Term

(2) 15

Overall Picture of State General Budget 2004/2005-2008/2009

(3) 19

Appropriations for Social Dimension

(4) 25

Uses and Resources of General Budget 2004/2005-2008/2009

(5) 28

Distribution of Uses on Budget Chapters and Components

(6) 34

Distribution of Resources on Budget Chapters and Components

(7) 38

Overview of State's General Budget

(8) 41

Special Allowances Granted to State's Workers Since 2000/2001-2007/2008

(9) 45

Distribution of Wages by Major Items

(10) 47

Purchase of Goods and Services

(11) 50

Interests

(12) 52

Subsidies, Grants and Social Benefits

(13) 55

Increases Granted to Pensioners Since 2000/2001 until 2007/2008

(14) 57

Purchase of non-Financial Assets "Investments"

(15) 59

General Taxes

(16) 63

Sales Taxes

(17) 64

Customs

(18) 66

Other Tax Revenues

(19) 67

Current and Investment Grants (20) 68 Other Revenues (21) 69

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Figures

Statement Figure No.

Page No.

Development of GDP Real Growth Rates Average and GDP Per Capita.

(1) 8

Distribution of Real Growth Resources of GDP by Sectors in FY. 2008/2009.

(2) 10

Deficit Indicators to GDP.

(3) 20

Indicators of General Budget Entities' Public Debt (% to GDP).

(4) 20

Revenues and Expenditures (% to GDP).

(5) 21

Wages and Subsidies.

(6) 21

Distribution of Tax Revenues in the Draft Budget 2009/2010.

(7) 22

Subsidies Distribution, According to Uses in the Draft Budget for FY. 2009/2010.

(8) 22

Development of Employees' Wages and Compensations During 2005/2006-2009/2010.

(9) 48

Development of Employees; Wages and Compensations (as % to expenses and DGP).

(10) 48

Development of Purchase of Goods & Services as % to expenses and GDP 2005/2006-2009/2010.

(11) 51

Development of Interests as % to Expenses and GDP 2005/2006-2009/2010.

(12) 53

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Statement Figure No.

Page No.

Development of Subsidy, Grants & Social Benefits as % to Expenses & GDP 2005/2006-2009/2010.

(13) 58

Development of Purchase of Non-Financial Assets as % to Expenses & GDP 2005/2006-2009/2010.

(14) 60

Development of Public Revenues & Tax Revenues in L.E Billion 2005/2006-2009/2010.

(15) 61

Composition of Tax Revenues in Draft Budget 2009/2010.

(16) 62

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Introduction

The financial statement of state' general budget draft for FY.

2009/2010 demonstrates the current financial policy's trends and

main features of general budget, especially regarding maintenance of

social dimension fundamentals in general budget, enhancing

economic growth rates and explaining developments of global crisis

and its repercussions on Egyptian economy. As we attached last year

an analytical statement to the draft of state's general budget for FY.

2008/2009, I have the honor to do the same in FY. 2009/2010. The

analytical statement contains the detailed estimates in the draft

budget, the main elements and components of both resources and

uses, which based its estimates on the following main determinants:

First Determinant : Using domestic and global economic trends and indicators in

preparing the estimates of general budget's principle components

after identifying correlation coefficients among budget trends and

components, and to carry out polls in various entities and institutions

about their expectations regarding important economic sectors'

performance during the next year.

Analytical Statement of

The State's General Budget Draft For

FY. 2009/2010

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Second Determinant : Preparing budget estimates, bearing in mind the actual execution

results of budget during previous fiscal years in light of structural

reforms and changes of financial and economic polices and taking

into account the projected results of implementing the current fiscal

year's budget, and the expected impact of the global economic crisis,

while neutralizing the impact of extraordinary revenues or

expenditures non-recurring items from year to year.

Third Determinant : Concerning with general budget's financial equilibriums and gross

debt of general budget's entities, in full compliance with non-

inflationary funding of the new fiscal year's expected deficit or the

debt components due during the year through financial instruments

and market prices' while restricting funding mainly on domestic

resources, except in the limits of abroad payments.

Fourth Determinant : Demonstrate general budget in a clear and detailed manner for both

economic and functional classifications within international

standards regulating them both.

Furthermore, the statement includes a set of detailed tables, which

are prepared in accordance with internationally agreed

methodologies in order to provide more information and analyses on

expenditure and revenues items.

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According to the above, the analytical statement deals with two main parts: Section I : Description of the state's general budget draft for FY.

2009/2010

This section explains the following : • Chapter I : Economic and social framework governing general

budget draft. • Chapter II: Total core estimates of general budget's uses and

resources. • Chapter III: Detailed estimates of general budget's expenses

and revenues. • Section II : This section includes statistical annexes, which are : Supplement I : Shows the detailed allocation of general budget's

uses and resources according to the economic classification of the stat's activities.

Supplement II : Shows the detailed allocation of general budget's uses and resources according to the administrative classification.

Supplement III : Shows the main elements of functional classification.

Supplement IV : Shows expenses by functional classification.

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Chapter I Economic and Social Framework Governing General Budget Draft

A) Economic framework of general budget draft:

Over the past years, the Egyptian government has pursued an integrated reform path, covering all aspects of economic policy: institutional, legislative and structural aspects, to focus on improving business and investment environment, in order to increase growth rates, operating, employment and real incomes to absorb work seekers and to improve living conditions of citizens. Public financial policy is based on three principle pillars, first of all is the use of financial policy's instruments and potentials to boost economic activity, to attract investments and to increase employment rates in various manufacturing, trade and services sectors, while maintaining neutral tax policy as far as possible. The second pillar can be summed up in maintainting expenditure constants in development and social areas, particularly health, education, infrastructure (e.g.roads and bridges, utilities, potable water and sanitation) as a sound investment for present and future generations at the same time,

Section I Descriptive Statement

Of State's General Budget Draft

For FY. 2009/2010

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in addition to the provision of needed resources for targeted spending on low-income groups through subsidy programs of food stuff, petroleum products, passenger transport, health insurance and medicines, low-income segments housing and supporting farmers..etc, in addition to subsidy programs earmarked for increasing employment rates, such as subsidy targeted to Upper Egypt development, industrial training, industrial zones and exports…etc. The third pillar can be summed up in stabilizing financial equilibriums of general budget and debt in the medium and long term, and its position's sustainability to the secured limits to emphasize economic stability and to create real resources, which enable the government to intervene to counter any unforeseen conditions. Such as the inflation that hit the Egyptian economy in 2008, or the global financial crisis followed it and its negative implications on the major production sectors, such as goods and services, as we demonstred in the financial statement. These polices have succeeded in increasing growth rates up to 7%, during FY 2005/2006 till 2007/2008, compared to less than 4% during the three years prior to this period. Growth rated of Egyptian economy are characterized by its various resources, due to the increase of domestic and foreign investment rates, local demand and the increase of no-oil exports, leading to facing global economy shocks. The economic growth in Egypt, led by the private sector does not depend on a particular sector or a specific commodity, as many sectors contributed in such development, such as manufacturing, energy, agriculture, construction, tourism, suez canal and financial services…etc.

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These developments led to increasing total employment opportunities available in government, public and private enterprises sectors to reach about 1.4 million job over the years 2006/2007, 2007/2008. It is planned to provide 520 thousand job during the next FY. 2009/2010, which means that a large number of citizens began to get income, in addition to a remarkable increase of incomes of many segments in society. These polices were also successful in attracting large domestic and foreign investments, in addition to achieving unprecedented increase in non-oil exports to reach an average of 35% during the last three years, along with its diversity and the accession of non-conventional sectors. These polices and reforms achieved income increases and surpluses realized significantly by the community, leading consequently to further expansion of projects and decrease unemployment rates to reach its lowest rate at 8.4% in the last quarter in Fy 2007/2008, compared to 11% at the end of 2005/2006, as well as to increase growth rate of per capita of GDP to reach 5.2% in 2007/2008, compared to 2.1% in 2003/2004. General budget's overall deficit rates declined due to the successful financial and tax policy, and to its significant role in boosting economic activity. The deficit ratio to GDP reached 6.8% in 2007/2008. It is expected to be maintained at this rate during the current fiscal year 2008/2009. This entails decline in total debt rates (domestic and foreign) of state's general budget entities (Central Administration – Services Authorities- Local Administration) to reach about 77% of GDP at the end of December 2008, compared to 118% at the end of 2003/2004.

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It is expected to maintain achieving this objective, despite the global crisis repercussions, which forced the government to request from the people's assembly for an additional fund amounting to LE 13.5 billion to accelerate executing vital investment projects in the areas of potable water, Sanitation, roads & bridges, ports development and promoting exports, aiming at enhancing local demand, employment ratios and countering, as far as possible, the global crisis implications, without abandoning for maintaining the current fiscal year's financial equilibriums 2008/2009. In addition to the above procedures, comes customs tariffs reduction on some commodities and production inputs, in order to reduce operating costs and stimulate enterprises to complete replacement and renovation to increase their productivity rates and to take advantage of the globally low prices due to the economic recession. These procedures will be funded through the additional resources, expected to be achieved from taxes, as well as other special resources made available during the year, and economies in some other expenditure items. General budget could not afford such additional burdens while maintaining the targeted deficit rate in the draft general budget without the boom experienced by the Egyptian economy in the previous period and the significant improvement in public revenues' resilience.

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Shows GDP's real growth rates and per capita of

GDP:

The available data on the results of the first half of 2008/2009 indicate to the declined growth rates reaching to 5%, compared to 7% in the corresponding period in 2007/2008, and growth rates dipped to 4.1% in the second quarter of 2008/2009, compared to 7.6% in the same period of 2007.2008. Foreign transactions sector is the main sector affected by the global crisis, as the increase in suez canal revenues during the second quarter of 2008/2009 reached only 1.6%, compared to 22% in the corresponding quarter of previous fiscal year. Suez canal revenues in the first half of 2008/2009 amount to $ 2.7 billion, increased by 11%, if compared to the same period in the previous year. While tourism receipts fell by 10% in the second quarter in the current FY to reach$ 2.5 billion. Exports proceeds in the second quarter of 2008/2009 fell by 24$ to reach $ 5.4 billion. In turn, the crisis' impacts has been extended to

Fig. (1)

Development of real growth rates of GDP and average per capita gross and Inflation rates

Real growth rate of GDP

Average growth rate of

real per capita income

Inflation rates in accordance with the consumers prices

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The available data on the results of the first half of 2008/2009 indicate to the declined growth rates reaching to 5%, compared to 7% in the corresponding period in 2007/2008, and growth rates dipped to 4.1% in the second quarter of 2008/2009, compared to 7.6% in the same period of 2007.2008. Foreign transactions sector is the main sector affected by the global crisis, as the increase in suez canal revenues during the second quarter of 2008/2009 reached only 1.6%, compared to 22% in the corresponding quarter of previous fiscal year. Suez canal revenues in the first half of 2008/2009 amount to $ 2.7 billion, increased by 11%, if compared to the same period in the previous year. While tourism receipts fell by 10% in the second quarter in the current FY to reach$ 2.5 billion. Exports proceeds in the second quarter of 2008/2009 fell by 24$ to reach $ 5.4 billion. In turn, the crisis' impacts has been extended to include other critical sectors, as manufacturing sector growth rates slowed, such sector played an important role in leading growth in the past three years, registering 4.5% in the first half of current year, compared to 7.8% in the same period last year. Telecommunication sector and petroleum & gas sector remain so far the only two sector achieving higher growth rates more than the realized in the first half last fiscal year.

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Shows distribution of GDP real growth sources

on various sectors in 2008/2009. This is also reflected in the significant decline in growth rates of total investments, particularly private investments reaching to 3.8% in the first half this year, compared to 16.8% in the previous year, despite the government investment growth, exceeding this rate to partially offset the impact of private investment downturn, which was clearly evident in the second quarter this year .

Fig. (2)

Distribution of sources of real growth of GDP on the different sectors

outputs M

anufacturing industries

Wholesale and retail

trade

Com

munications and

Information

Technology

Agriculture,

forestry and

Construction

Financial intermediation,

insurance and social security

Transport and

storage

General

Governm

ent

Social and personal services

Suez Canal

Water and E

lectricity

Real estate activities

Restaurants and

Hotels

Percentage of contribution to the growth

of real gross domestic product

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The economic slowdown was reflected in private consumption growth rates, which also practice some retreat in the second half of the current year, so the government consumption represents the mainstay maintained achieving developing consumption rates. Table (1) shows the declined growth rates in most sectors and expenditures as of the fourth quarter in FY. 2007/2008 or the first quarter of current year. The previous indicators as a whole show the negative impacts of the global crisis on the Egyptian economy, and hence on the surpluses of various sectors. This affects tax revenues and profit transfers (in sovereign entities such as oil sector and suez canal) due to public treasury. In light of these considerations, as well as what internationally was published about the spillover of the global crisis for two years (at the best), Egyptian economy's growth rates declined between 4-5% in current FY, and between 3-4% in FY 2009/2010. It is also expected that general budget's overall deficit will increase again to reach about 8% in FY. 2009/2010, compared to 6.8-6.9% in FY. 2007/2008, 2008/2009 (expected), consequently declines public debt's reduction rates.

Table (1) GDP's Quarter Growth Rates

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

GDP at Cost Prices 7.1% 6.7% 7.3% 7.2% 6.5% 7.7% 7.4% 6.8% 5.9% 4.1%GDP at Market Prices 6.9% 6.5% 7.4% 7.6% 6.5% 7.6% 7.4% 6.8% 5.8% 4.1%Final Consumption 4.5% 5.6% 5.0% 9.2% 5.0% 5.2% 4.4% 6.8% 5.5% 5.1%Household Consumption 5.0% 6.8% 6.0% 10.3% 5.5% 5.6% 4.6% 7.6% 5.5% 5.0%Government Consumption 1.4% 2.5%- 1.6%- 2.9% 1.4% 2.0% 2.5% 2.7% 5.4% 5.8%Investment (includes inventory) 2.3% 32.0% 30.8% 26.2% 17.8% 16.1% 13.4% 13.5% 4.8% 3.4%Exports 12.4% 14.5% 25.5% 39.7% 17.0% 35.8% 37.3% 25.9% 15.1% 15.2%-Imports 3.5% 23.7% 32.1% 51.7% 16.2% 29.4% 28.5% 30.1% 13.1% 10.7%-

GDP 22.3% 25.5% 21.4% 20.0% 17.5% 20.5% 21.1% 22.4% 25.8% 13.5%Total Commodity Sector (of which) 20.8% 20.7% 19.3% 12.5% 17.8% 22.0% 25.1% 26.9% 29.9% 11.3%

Agriculture, Forestry and Fishing 37.8% 19.2% 27.3% 4.5% 12.0% 10.6% 12.6% 18.0% 30.8% 15.8%Extractions 13.1% 23.3% 19.6% 7.4% 22.7% 35.2% 40.4% 39.2% 35.0% 6.8%-Manufacturing Industries 12.6% 16.1% 13.5% 21.6% 18.3% 21.8% 23.9% 23.7% 26.9% 23.3%Electricity 21.4% 15.9% 8.9% 2.0% 17.2% 15.2% 14.9% 18.4% 14.9% 13.2%Building & Construction 20.2% 37.1% 22.2% 28.5% 24.3% 16.9% 21.3% 25.2% 26.0% 22.2%

Total Production Services 23.6% 32.3% 24.8% 27.3% 20.6% 23.5% 19.7% 19.2% 22.6% 15.8%Transport & Storage 20.3% 21.5% 18.0% 21.8% 14.0% 14.6% 17.4% 24.1% 33.2% 16.4%Communication 66.5% 82.5% 113.2% 110.5% 17.7% 18.0% 19.5% 16.1% 12.8% 17.0%Suez Canal 2.3% 2.1% 10.3% 1.6%- 20.2% 22.2% 22.4% 22.9% 20.9% 14.0%Wholesale & Retail Trade 15.8% 28.5% 15.9% 31.2% 26.3% 28.7% 20.4% 16.8% 26.9% 17.5%Financial Intermeditation & Auxilary Activities 11.9% 9.2% 9.8%- 22.6%- 18.4% 14.2% 8.7% 15.3% 15.5% 14.1%

Insurance and Social Security 109.2% 111.5% 97.8% 128.2% 16.0% 14.6% 19.4% 19.3% 14.4% 14.9%Restaurants and Hotels 11.5% 40.1% 37.1% 32.1% 20.0% 42.1% 29.3% 23.2% 22.1% 13.1%

Total Social Services 24.5% 27.6% 21.2% 32.2% 10.5% 9.8% 11.8% 15.1% 18.8% 15.8%Source: Ministry of Finance - Unit of Analysis and Economic Forecast.

2006/2007 2007/2008 2008/2009

Resulting from Expenditure Side

Resulting from Production Side

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In light of the foregoing, the important chanlenges facining the Egyptian economy can be summed up in the following points: 1- The extension of global economy's recession for a long time

with the same intensity, thus investment inflows and receipts from goods and services exports would be affected, and its impact on the economic sector's ability to keep the workforce and declining corporate profits, which affects tax proceeds, then the continuation of rising general budget's deficit again.

2- The resumption of global commodity prices to rise, particularly food stuff as a result of production decline, whether because of bad weather in some regions or because of the farmers' reluctance in some regions to produce certain crops due to the low prices in the recent period, which may entail higher subsidy bill once again.

On the other hand, the forecasts indicates that the average of the effective interest rate of government debt ranges from 12.5% to 9% during 2008/2009. 2009/2010. So, the price of Brent barrel used to estimate petroleum products subsidy is expected to reach about $ 50 in 2009/2010, compared to $73 expected in current FY. The price average of imported wheat is estimated at $239, per ton – other than freight and shipping expenses- taking into account that, the prices of domestic wheat supply will increase more than the prevailing prices in the global markets, in light of government guidelines to encourage farmers to grow and supply wheat.

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It has been assumed to purchase an amount of 8.5 million tons of grains (to produce subsidized bread) in light of consumption growth rates. It was also expected that global trade would stagnate in 2009/2010, reduction in suez canal receipts to reach $ 4.2 billion, compared to $ 5.1 billion in 2007/2008 .

Shows The most important indicators used in draft budget's estimates for FY 2009/2010 in light of the available indicators to April 2009:

Table. (2)

2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

GDP at market prices (LE. Million) 617,700 744,800 896,500 1,040,000 1,181,000

Nominal growth rate 14.7% 20.6% 20.4% 16.0% 13.6%

Real growth rate 6.8% 7.1% 7.2% 4.8% 4.0%

GDP Deflator 7.9% 13.4% 13.2% 10.7% 9.2%

Population, excluding who lives abroad (million) 71.3 72.7 74.1 75.5 76.9

Population growth rate 1.9% 1.9% 1.9% 1.9% 1.8%

Real growth rate of per capita GDP 4.8% 5.1% 5.1% 2.9% 2.1%

Prices:Average of effective interest rate on government debt 6.1% 7.6% 7.8% 12.5% 9.0%

Price average of a Brent Barrel ($) 61.5 64.2 95.8 73.1 50.0

1 ـ5 ـ

Price average of Egyptian oil Barrel ($) (1) 55.9 56.9 84.1 64.5 44.7

Price average of global wheat ($/ton) (2) 154.2 189.7 328.8 232.6 238.5

Price average of local wheat (LE./ton) 1103.2 1183.7 2555.1 1813.4 1533.4

Price averag of imported corn (LE./ton) 595.7 861.1 1106.1 845.5 948.2

Egypt's purchases of subsidized grains (million tons) of which: 8.3 6.6 9.0 8.1 8.5

Imported wheat 4.9 4.4 6.4 5.8 5.9

Local wheat 2.9 1.9 2.4 2.0 2.1

Corn 0.6 0.3 0.2 0.3 0.5

Growth rate of global economy (3) 5.1% 5.2% 3.2% 1.3%- 1.9%Growth rate of global trade (4) 9.2% 6.8% 3.3% 11.4%- 0.8%

Egypt's imported commodities ($ million) 24,909 32,836 41,618 46,964 50,792

Source: Ministry of Finance

1. Egyptian oil barrel price is calculated in the basis of its connection with global Brent barrel price according to this equation: price of Egypt's barrel = (0.8609* price of Brent) + 1

2. Prices of used wheat kinds: soft Red Winter Wheat from chicago Stock Exchange for goods Trade and Hard Red Winter wheat from Kansas stock Exchange.

3. According to IMF estimates - World Economic Outlook - April, 2009 - dominated by purchasing power factor and reflect calender years (2005/2006 = 2006).

4. According to IMF estimates - World Economic Outlook - April, 2009 - the figures reflect calender years (2005/2006 = 2006).

Table (2) Major Economic Indicators

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Therefore, it is expected to postpone achievement of the general budget's objectives in the medium term, which are directed to reduce overall deficit's ratio to GDP due to the negative impacts caused by the inflation of 2008, and the global crisis that followed. The deficit reduction will be linked to the rapid completetion of the reform procedures included in the Ministry of Finance's agenda. First of all, is the current system reform of sales tax, and introduce the required amendments to income tax law no. 91/2005, as well as law no. 139/2006 on government accounting, in light of the actual practice since their promulgation, also the application of real estate tax law. Furthermore, working to reduce subsidy access not to the targeted groups and the competition of Treasury reform system, which entails reducing the costs of government funds and financial transactions. In light of the above changes and indicators, the expenditure & revenues estimates in stat's general budget draft for FY. 2009/2010 will be as follows: Uses : The draft budget demonstrates decreased uses by 10.5% less than the projected this fiscal year 2008/2009, taking total uses to LE. 319.1 billion, and earmarked as follows: - First chapter estimates " wages and compensations for

employees" amount around LE. 86.1 billion, compared to LE. 77.2 billion expected in current FY., an increase of 11.6%.

- Second chapter estimates "Purchase of goods and services" needed for government work process, amount about LE. 27.1 billion, compared to LE. 24.5 billion expected in current FY. 2008/2009, and increase of 10.4% .

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- Third chapter estimates " Interests" on domestic and foreign loans amount about LE. 71.1 billion, compared to LE. 52.9 billion expected in current FY 2008/2009, an increase of 34.4%.

- Fourth chapter estimates "Subsidy, grants and social benefits" amount around LE. 73.4 billion, compared to LE. 132.8 billion expected in current FY. 2008/2009, this reduction is due to the decreased appropriations earmarked as a result of globally low prices of such commodities, despite the increase of subsidized quantities within the government's commitment to support low-income segments. This is in addition to the non-recurrence settlements made with insurance and pension funds in 2008/2009 (in both revenues and expenditures sides).

- Fifth chapter estimates "Other expenditures" amount about LE. 28.1 billion, compared to LE. 25.8 billion expected in current FY 2008/2009, an increase of ratio 8.8%.

- Sixth chapter estimates "Purchase of non-financial assets" in the draft budget for FY. 2009/2010 amount about LE. 33.4 billion, increased by LE. 5 billion more than the included in the budget's original allocation for FY. 2008/2009 to strengthen the Egyptian economy's ability to counter the global financial crisis by accelerating the implementation of investment plans and infrastructure projects.

- Seventh chapter estimates " Acquisition of financial assets" amount about LE. 3.6 billion, compared to LE. 5.7 billion expected to be achieved in general budget of 2008/2009, a reduction of 37.6% due to the decline in contributions and equities.

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Revenues : Total public revenues in general budget draft for FY. 2009/2010 amount LE. 225 billion, compared to LE. 289.7 billon expected in current FY. 2008/2009, a reduction of 22.3%. - Tax revenues are expected to be declined by 12.9% less than

the achieved in current FY. 2008/2009 to reach about LE. 145.5 billion.

- Regarding grants, it is expected to increase by 16.5% to reach LE. 7.7 billion.

- Other revenues (non tax) decreased by 38.2%, less than the expected this year to record LE. 71.7 billion, as a result of the expected decline in transferred profits of public sector enterprises, public business sector, economic authorities, petroleum and the suez canal due to the global crisis, in addition to the non-recurrence settlement made with pension and insurance funds in 2008/2009.

- Revenues of acquisition proceeds are estimated at about LE. 2.8 billion, assuming the absence of privatization proceeds.

General Results : In light of the estimated expenditures and revenues mentioned above, the overall deficit in the draft budget for FY. 2009/2010 is estimated at LE. 94.9 billion, 8% of GDP, compared to the expected deficit of FY. 2008/2009 amounting LE. 71.4billion, a ratio of 6.9% of GDP.

Demonstrates the overall picture of state's

general budget in the previous three years, the expected in FY 2008/2009 and the draft budget for FY. 2009/2010.

Table. (3):

Draft budget Expected2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

# Revenues 224,986 289,733 221,404 180,215 151,266

1- Taxes 145,544 167,066 137,195 114,326 97,779

2- Grants 7,700 6,608 1,463 3,886 2,379

Other Revenues ـ 3 71,743 116,059 82,746 62,003 51,108

#Uses 319,137 356,439 282,290 222,029 207,811

Wages and compensation of employees 86,135 ـ 1 77,179 62,839 52,153 46,719Purchase of goods and services 27,099ـ 2 24,536 18,470 17,028 14,428Interest ـ 3 71,066 52,930 50,528 47,700 36,815

Subsidies, Grants and Social Benefitsـ 4 73,387 132,812 92,371 58,442 68,897

Other Expensesـ 5 28,058 25,789 23,892 21,208 19,740

6- Purchase of non-financial assets "investment" 33,393 43,193 34,191 25,498 21,212

Cash Deficit (Surplus) 94,151 66,706 60,886 41,814 56,545

#Net Acquisition of Financial Assets 730 4,727 236 12,883 -6,160

Receipts from Lending and Sales ofـ 4Financial Assets without Proceeds from Privatization

2,832 884 1,651 -1,360 8,890

7- Acquisition of Domestic and Foreign Financial Assets without Public Treasury contributions in Restructuring Fund

3,562 5,611 1,887 11,522 2,730

Overall Deficit 94,880 71,433 61,122 54,697 50,385# Net Borrowing 94,880 71,333 60,450 54,526 50,259

Borrowing and Issuance of Securities ـ 5other than Shares 122,038 91,715 69,981 62,244 74,773

Pepayment of Domestic and Foreignـ 8Loans 27,158 20,382 9,531 7,719 24,514

# Net Proceeds from Privatization 0 100 673 172 126

* Proceeds from Privatization 0 200 673 9,962 1,351

∆Public Treasury Contribution to Restructuring Fund 0 100 0 9,790 1,225

∆ GDP 1,181,000 1,040,000 896,500 744,800 617,700

∆ % of Revenue to GDP 19.1% 27.9% 24.7% 24.2% 24.5%

∆ % of Expenses to GDP 27.0% 34.3% 31.5% 29.8% 33.6%

∆ % of Cash Deficit (Surplus) to GDP 8.0% 6.4% 6.8% 5.6% 9.2%

∆ % of Overall Deficit to GDP 8.0% 6.9% 6.8% 7.3% 8.2%

StatementActual

LE.Million

- 19 -

Table (3) Overall Picture of State General Budget

2005/2006 - 2009/2010

-19-

Indicators of the deficit to GDP

Expected

2008-

2009 B

udget 2009-2010 Overall deficit Primary Deficit Cash deficit

Expected

2008-

2009

Budget 2009-2010

Expected

2008-

2009/2

Budget 2009-2010 /2

Expected

2008-

2009/2

Budget 2009-2010 /2

-20-

شكل (5): اإلیرادات والمصروفات (نسبة إلى الناتج المحلى)

%19.1

%30.1 %30.0

%33.6

%30.4%31.5

%27.0

%21.0 %20.6

%24.5 %24.6 %24.7

%27.9

%34.3

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%20

04/2

003

2005

/200

4

2006

/200

5

2007

/200

6

2008

/200

7

2009

/200

8 قعتوم

نةوازم

2010

/200

9

(%)

جملة اإلیرادات جملة المصروفات

شكل (6): األجور والدعم

%7.3%6.2

%7.7 %7.7 %7.6

%7.1 %7.0 %7.4

%5.1 %5.5

%11.2

%8.0 %10.3

%12.8

%55.5 %54.8

%47.8 %45.6 %45.8 %46.2

%59.2

%36.9

%70.5

%79.5

%50.4

%39.2

%51.1

%67.3

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2004

/200

3

2005

/200

4

2006

/200

5

2007

/200

6

2008

/200

7

2009

/200

8 قعتوم

2010

/200

9 نةواز

م

2004

/200

3

2005

/200

4

2006

/200

5

2007

/200

6

2008

/200

7

2009

/200

8 قعتوم

2010

/200

9 نةواز

م

(%)

20%

30%

40%

50%

60%

70%

80%

90%

100%

األجور وتعویضات العاملین الدعم والمنح والمزایا اإلجتماعیة

Figure 5: Revenue and expense ratio to GDP

Total Revenues Total Expenditures

Expected

2008-

2009

Budget

2009-2010

Figure 6: Wages and Subsidy

Wages and workers compensation

Support and scholarship and social benefits

-21-

شكل (8) توزیع الدعم بحسب اإلستخدامات فى مشروع موازنة 2010/2009

المواد البترولیة %57

المواد الغذائیة %23

دعم نقل الركاب %1

شركات المیاه %1

دعم الم زارعین %1

تنشیط الصادرات %7

أخرى %10

أخرى %12

شكل (7): توزیع اإلیرادات الضریبیة فى مشروع موازنة 2010/2009

الضرائب على الدخل%40

أخرى%2

شركات أموال أخرى%11

الضرائب من البنك المركزى%0.10

الضرائب من قناة السویس%6

الضرائب من ھیئة البترول والشریك األجنبى

%13

ضرائب النشاط التجارى والصناعى

%3

الضرائب على المرتبات المحلیة

%5

الضرائب األخرى%8

الضرائب على السلع والخدمات

%42

ضرائب التجارة الدولیة%10

Figure 7: Distribution of tax revenues in the draft budget 2009/2010 Other taxes Local payroll taxes

Commercial and industrial activity taxes

Petroleum Corporation and foreign partner taxes

Suez Canal taxes

Central Bank taxes

Other funds companies Other

International trade taxes

Taxes on goods and services

Income taxes 40%

Figure 8: Distribution of subsidy as uses in the draft budget 2009/2010

Petroleum Materials

57%

Other 12%

Food materials 23%

Exports Activation 7%

Other 10%

Farmers subsidy

1%

Water companies

1%

Transportation subsidy

1%

-23-

(B) Social framework of the draft budget: Social justice is one of the major pillars forming the state's financial policy Social aspects are the most priorities of government policies in the economic reform process. The state's general budget draft for FY. 2009/2010 allocated increasing financial appropriations to promote individuals living standard, provide them with basic needs and ensure that all citizens benefit from the economic development, which began in Egypt during the past years. In more than one occasion, president Mobarak emphasized on his perminant bias to the poors and the provision of social protection to low-income segments, in the context of social justice, which means equal distribution of growth and development results and enhancing partnership among citizens of one country to achieve progress. As also president Mobarak referred at the beginning of the current parliamentary session, that social justice is not only the equal distribution of development and reform results, but it means the fair access of citizens to employment, services, equal distribution of investment projects on governorates, the fair access of employment to citizens in Upper Egypt and Sinai and the provision of health, education, housing, utilities and transport services according to the international standards. Therefore, the state's general budget draft reflects the government objectives to increase economic development rates, taking into account the social aspects, including the provision of basic needs of citizens at prices, commensurate with their incomes, supporting the most needy segments and improving public services with social dimension, such as education and health.

-24-

Accordingly, the total funds appropriated by the government in the general budget draft for FY. 2009/2010 for various aspects of social spending, amount about LE. 170.2 billion, accounts for 47.6% of total uses in state's general budget of LE. 349.9 billion, decreased by 21.8%, less than the corresponding funds in FY. 2008/2009's budget

Shows the appropriations estimated in the draft of stat's general budget for FY. 2009/2010 to the different requirements of social dimension :

Table No. (4):

-25-

(LE. Million)

Statement Draft Budget 2009/2010 Budget2008/2009 • Education: Provision of educational process requirements both basic education or pre-university and university, confirming from the State that, education is a community right and believing that, education is the basic input for production and development, as well as to provide the requirements of the second phase of teacher’s cadre (2500 LE. million) in next FY. Budget.

45183 38397

• Health: Provision of health services to citizens and treatment requirements in hospitals and health units, taking into account improving conditions of doctors and nurses in addition to allocations of health insurance to citizens within the budget of the Health Insurance Authority (LE.3772.7 million) and health insurance to students and to subsidize medicines within subsidy appropriations (LE. 405 million).

16520 13585

• Subsidy: Subsidy of supply and additional commodities, petroleum products such as natural gas, butane and diesel, fuel, petrol, kerosene , electricity subsidy within general policy framework to show energy subsidy in general budget, as well as requirements of Housing subsidy for low-income groups, subsidy for promoting exports, public transport and subsidy for Upper Egypt development.

59775 95930

Table (4) Appropriations for Social

Dimension

-26-

Statement Draft Budget 2009/2010 Budget2008/2009 • Supporting and strengthening pension systems and social security: Provision of subsidizing and strengthening requirements of pension systems and their restructuring of which: - Estimated interest on pension funds

used to finance public investments. - Insurance benefits in pension

system incurred by public Treasury.

- Treasury contributions to support pension funds.

- Social solidarity pension for poor families.

- Children's pension. - Miscellaneous social assistance.

15912

8686

5000

1120

20 4900

35638

15824

72071

30277

1120

20 4004

58516

• Services for Youth, Culture and Religious Affairs

13071 11109

Grand Total 170187 217537

-27-

Chapter II Total Core Estimates of General Budget's

Uses and Resources -----

The draft of stat's general budget for next FY. 2009/2010 reaches about LE. 349.8 billion, representing the targeted allocations of budget uses, distributed on expenditures of LE. 319.1 billion, requirements of financial assets acquisition of LE. 3.5 billion, and finally payment of domestic and foreign loans, of LE. 27.2 billion. Equally offsetting, the targeted stat's general resources such as general tax revenues, grants etc, amounting LE. 224.9 billion, proceeds from acquisition of financial assets of LE. 2.8 billion and borrowing through securities (bills and bonds etc) of LE. 122.1 billion.

Shows total core estimates of general

budget's uses and resources : Table No. (5):

Draft Budget Expected Draft budget Expected2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

● Operating Uses: 319.1 356.4 282.3 222.0 207.8 ● Public Revenues: 224.9 289.7 221.4 180.2 151.3

They are Wages, Required goods and services, Interests of domestic and foreign loans, Subsidies, grants and social benefits, Miscellaneous expenditures, Purchase of non-financial assets (investments)

They are Tax Revenues from Income Taxes, Sales Taxes, Customs Duties and other sovereign resources, as well as Available Grants and other Revenues from surpluses, profits

and various services revenues. ● Acquisition of financial assets: 3.5 5.7 1.9 21.3 4.0 ● Proceeds from Acquisition: 2.8 1.1 2.3 8.6 10.2They are Lending, Public Treasury contribution to economic authorities, companies, banks and restructuring of public

enterprises sector companies.

They are proceeds from lending, and proceeds from sales of asset.

●Debt Repayment 27.2 20.4 9.5 7.7 24.5 ●Funding Resources: 122.1 91.7 70.0 62.2 74.8They are payments and amortization of domestic and foreign debt in accordance with the specified maturity

dates.

They are borrowing and issuance of securities such as bills and bonds.

Total 349.8 382.5 293.7 251.0 236.3 Total 349.8 382.5 293.7 251.0 236.3:SourceMinistry of Finance

(LE. Billion )ResourcesUses

- 28 -

Statement StatementActual Actual

Table (5) Uses and Resources of General Budget

-29-

By analyzing the most important indicators of stat's general budget draft's uses and resources, we demonstrate the following :

• Total equilibriums between, budget uses and resources. • Budget uses • Budget resources.

-30-

According to the foregoing data, 1- Public uses, amounting to LE. 349.8 billion, includes LE.

319.1 billion expenses in wage bill, goods and services requiremtnts, domestic and foreign interests, subsidy, grants and social benefits and finally, purchase of non-financial assets "investments". This means that expenses represent almost 91.2% of overall uses volume in draft budget.

2- Public revenues, amounting to LE. 224.9 billion, includes state's public revenues, gerneral tax revenues (Income tax, stamp duties, sales tax and customs duties), as well as revenues from foreign and domestic grants, other revenues from economic authorities surpluses and corporate profits and other various revenues.

3- The stat's ability to cover its expenses represents the referred public revenues, amounting to LE. 224.9 billion to cover the expenses, amonting to LE. 319.1 billion. It means that public revenues cover the ratio of 70.5% of expenses, the remaining or the gab of LE. 94.2 billion constitutes cash deficit of general budbet, the ratio of 8%of GDP.

4- The Uses side includes LE. 3.5 billion paid by the state to acquire financial assets (such as loans and contributions in organizations and companies). The revenues side includes LE. 2.8 billon representing the

state's assets acquisition collected from the granted loans installments and proceeds from the sale of some financial assets.

(A) Total Equilibriums Between Budget Uses & Resources:

-31-

5- The difference between financial assets acquisition, amounting to LE3.5 billion, and the proceeds from financial assets acquisition, of LE. 2.8 billion, constitutes what we called net acquisition of financial assets, which in this case in the draft budget, equals LE. 0.7 billion. It means that, the proceeds from acquisition is less than the acquisition payments, therefore the amount of LE. 0.7 billion will be added to the above mentioned cash deficit of LE. 94.2 billion, the result will be LE. 94.9 billion, which equals the overall deficit of budget, the ratio of 8% GDP.

6- The uses side includes LE. 27.2 billion constituting outstanding installments of domestic and foreign loans in FY. 2009/2010. It should be noted here that, loans repayment does not constitute real burden on budget, as it is associated with the periodic public expenditures, but it realy represent partialy amortization of state's public debt and a reduction in stat's liabilities. So such loans payment is not included in the calculation of cash or overall deficit of general budget.

7- On public revenues side, (which includes not only the referred public revenues, but it also inclueds funding resources) includes LE. 122.1 billion representing borrowing and issuance of securities required to meet each of : (LE. Billion)

• Covering general budget's overall deficit . 94.9 • Payment of domestic and foreign loans . 27.2

Total 122.1

-32-

According to the draft of state's general budget for FY. 2009/2010, general budget uses amount about LE. 349.8 billion. Such uses are divided into three main components: Expenses : Expenses are associated with direct activities of units and agencies of stat's general budget entities, such as wage bills, requirements, interests, subsidy public expenses, in addition to the purchase of non-financial assets "investments". Such expenses are estimated at LE. 319.1 billion, compared to the expected to be spent during current FY. amounting LE. 356.4 billion. The reduction in draft budget estimates reaches LE. 37.3 billion, a ratio of 10.5%. Acquisition of Financial Assets : Public treasury's payments to the economic authorities and companies in the form of loans and contributions to address funding imbalances in such entities. The amount of LE. 3.5 billion is allocated for such purpose, compared to LE. 5.7 billion was expected in FY. 2008/2009 thus, the decline in draft budget estimates is less than the expected by LE. 2.26 billion, a ratio of 36.8%. Payment of loans : It is represented in installments and amortization of domestic & foreign loans in accordance with the maturity dates specified.

(B) General Budget Uses:

-33-

These installments are estimated in the draft of state's general budget for FY. 2009/2010 at about LE. 27.2 billion, compared to LE. 20.4 billion was expected in current FY. 2008/2009.

The following table No. (6) shows uses allocations in the draft budget on its different chapters within the previous components :

Draft budget Expected

2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

1 - Operating Expenses:

● Wages and Compensations for Employees 86,134.6 77,179.2 62,838.6 52,152.7 46,719.1

●Purchase of Goods and Services 27,099.1 24,536.0 18,470.0 17,027.6 14,420.8

●Domestic and Foreign Interests 71,065.8 52,929.7 50,527.9 47,699.8 36,822.1

● Subsidies, Grants and Social Benefits 73,386.9 132,812.0 92,371.0 58,442.3 68,896.8

● Other Expenses 28,058.2 25,788.7 23,891.7 21,208.4 19,739.9

●Purchase of non-financial Assets (Investments) 33,392.6 43,192.9 34,190.9 25,498.4 21,211.8

Total (1) 319,137.2 356,438.6 282,290.1 222,029.2 207,810.5

2- Acquisition of Financial Assets:

● Lending and Contribution 3,561.7 5,611.4 1,886.8 11,522.3 2,730.6

●Requirements of Public Enterprise Sector Companies Restructuring Fund and Supporting Public Banks

0.0 100.0 0.0 9,789.8 1,225.0

Total (2) 3,561.7 5,711.4 1,886.8 21,312.1 3,955.6

3- Loans Repayment:

●Repayment of Domestic and Foreign Loans 27,157.8 20,381.9 9,531.4 7,718.9 24,514.1

Total 349,856.7 382,531.8 293,708.3 251,060.2 236,280.2

:SourceMinistry of Finance

ActualStatement

LE. Million

- 34 -Table (6)

Distribution of Uses on Budget Chapters and Components

-35-

According to the draft of state's general budget for FY. 2009/2010, general budget resources amount about LE. 349.8 billion. Such resources are divided into three major components: Public Revenues : Public Revenues are the receipts realized from operation processes and direct & indirect activities of units & agencies of state's general budget entities, mainly include different kinds of tax revenues, such as at income taxes, sales taxes and customs taxes, as well as at home and abroad received grants, and other revenues derived from surpluses, profits and receipts of provided services. Such public revenues are estimated at around LE. 224.9 be collected in current FY. amounting to LE. 289.7 billion, the decline in the draft budget estimates would reach LE. 64.8 billion, decreased by 22.4%. The decline mainly dues to the following basic factors: 1- The decline in tax revenues from LE. 167066.0 million

expected in current FY. to LE. 145543.9 million, decreased by LE. 21522.1 million, results from the reduction in oil taxes, due to lower world prices, and the impacts on suez canal in light of the repercussions of the global financial crisis, and taking into account its impacts on corporate profits and the owed taxes and other tax types.

2- Increasing grants from LE. 6608.0 million to LE. 7700 million expected in current FY., increased by LE. 1092 million, in addition to the expected international grants in the context of intensive discussions held with donors.

(C) Resources of General Budget :

-36-

3- The fall of other revenues from LE. 116058.7 million expected in current FY. to LE. 71742.6 million, decreased by LE. 44316.1 million, basically dues to excluding the inclusion of the actuarial surplus of pension and insurance funds, which amounts LE. 24344.0 million, as it is non-recurring income, while excluding the offsetting amount from expenditures. Also oil surplus decreased by about LE. 11341.3 million (from LE. 22143.3 to LE 10802.0 million), while excluding the offsetting amount from expenditures (petroleum products subsidy) because of the lower world oil prices less than the projected in 2008/2009's budget. As well as, suez canal's surplus declined by about LE. 3850.8 million (from LE. 15680.3 to LE. 11829.5 million) as a result of the crisis impacts on suez canal, the affected international trade and piracy operations.

It should be noted that the expected revenues in current FY. 2008/2009 will increase from LE. 276794.9 million to LE. 289732.7 million, an increase of LE. 12937.8 million, this is because of the extensive efforts exerted to collect tax arrears, also because of the increased grants achieved, as well as the special funds and accounts increased revenues, which have the offsetting amount in expenditures, equals about one billion pounds, the achieved receipt from natural gas prices variations, of about LE. 1.4 billion, and the expected proceeds of about LE. 4.8 billion, from securitization of new urban communities' land bonds.

-37-

• Receipts from Acquisition: It represents essentially the collected loans installments awarded by treasury, and the proceeds from offering equity shares for sale. Such proceeds are estimated in the draft of state's general budget for FY. 2009/2010 at about LE. 2.8 billion, compared to LE. 1.1 billion expected in FY. 2008/2009. an increase of LE. 1.7 billion. • Funding Sources: Funding requirements needed to cover general budget's deficit (differences between expenditures and revenues), installments payment and amortization of outstanding loans. Funding sources in the draft budget for FY. 2008/2009 are estimated at around LE. 122.1 billion, compared to the expected of LE. 91.7 billion in FY. 2008/2009, increased by LE. 30.4 billion, an increase ratio of 33.2%. of which about LE. 6.8 billion an increase in the domestic and foreign loans installments due in the next fiscal year, according to its maturity dates. This matter does not raise fears, as funding increase is offset by reduction in public debt, because of the payment of such installments. So the actual measure of impacts on debt is what is called net borrowing, which amounts in the presented draft budget about LE. 94.9 billion, compared to the expected of LE. 71.3 billion, increased by LE. 23.6 billion, an increase ratio of 33.1%. The following table no. (7) shows revenues allocation in the draft budget on its different chapters within the before mentioned components :


2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

1 - Public Revenue:

● Tax Revenues 145,543.9 167,066.0 137,194.9 114,325.8 97,778.4

● Grants 7,700.0 6,608.0 1,462.6 3,886.1 2,379.2

● Other Revenues 71,742.6 116,058.7 82,746.3 62,002.8 51,108.3

Total (1) 224,986.5 289,732.7 221,403.8 180,214.6 151,265.9

2-Proceeds from Acquisition:

● Proceeds from Lending and Issuance of Securities 2,832.1 884.2 1,650.9 -1,360.4 8,890.1

●Privatization Proceeds 0.0 200.0 672.5 9,962.0 1,351.1

Total (2) 2,832.1 1,084.2 2,323.4 8,601.6 10,241.2

3- Funding Resources:

● Borrowing and Issuance of Securities such as bills, bonds and other 122,038.1 91,714.9 69,981.2 62,244.0 74,773.0

Total 349,856.7 382,531.8 293,708.4 251,060.2 236,280.1


Actual Statement

LE. Million

- 38 -

Table (7) Distribution of Resources on Budget Chapters

and Components

-39-

Chapter III

Detailed Estimates of Stat's General Budget's Expenses and Revenues According to the

Economic Classification -----

Chapter II demonstrates the detailed estimates of state's general budget draft for FY. 2009/2010. Total budget amounts about LE. 349.8 billion, allocated for budget's main components, uses and resources, which are also distributed on their respective items of state's general budget. However, expenditures & revenues of the state's general budget should be developed according to the economic classification, while determining the economic basis in developing budget estimates. Furthermore, the supplements attached to this statement demonstrate statistical presentation on budget's expenses items in accordance with functional and administrative classification in stat's general budget entities (central administration-local administration and services authorities). The importance of this statement is to highlight the components and details of budget's expenses and resources and determine the monetary impact of state's general budget performance, reflecting the structural performance of general budget operations, identifying net effect of public expenditure on the national economy and its direct impact on production, the development of goods and services demand and linking that with the achieved surpluses, taxes and transfers to different public revenues, which shows the impact on aggregate demand, of national economy.

-40-

In this regard, we are dealing with the following : • Overall picture of stat's general budget . • Detailed presentation of general budget expenditure's chapters

and analysis of their main components. • Detailed presentation of general budget revenues' chapters and

analysis of their main components

In the context of the economic classification of state's general budget, bearing in minde the international and the economic norms, the revenues estimates targeted during the respective fiscal year are being developed. Then the expenditures, or the required operation spending will be estimated according to its economic purposes, so the gab between revenues and expenses will be determined, identifying cash and overall deficit of state's general budget and their funding resources. The following table no (8) shows the overall picture of state's general budget for FY. 2009/2010, compared to the projected and expected in current FY. 2008/2009, and the actual resultes for the previous three years:

(A) Overall picture of state's General Budget :


2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

#Revenues 224,986.5 289,732.7 221,403.6 180,214.6 151,265.9

# Expenses 319,137.2 356,438.6 282,290.1 222,029.2 207,810.6

Cash Deficit (Surplus) 94,150.8 66,705.9 60,886.5 41,814.6 56,544.7

# Net acquisition of financial assets 729.5 4,727.1 235.9 12,882.8 -6,159.5

Overall Deficit 94,880.3 71,433.0 61,122.4 54,697.4 50,385.2

∆ GDP 1,181,000.0 1,040,000.0 896,500.0 744,800.0 617,700.0

∆ % of Revenues to GDP %19.1 %27.9 %24.7 %24.2 %24.5

∆% of Expenses to GDP %27.0 %34.3 %31.5 %29.8 %33.6

∆ % of Cash Deficit (Surplus) to GDP %8.0 %6.4 %6.8 %5.6 %9.2

∆ % of Overall Deficit to GDP %8.0 %6.9 %6.8 %7.3 %8.2


StatementActual

LE. Million

- 41 -

Table (8) Overview of The State General

Budget

-42-

Public expenses in stat's general budget draft for FY. 2009/2010 ar estimated at about LE. 319137.2 million, compared to LE. 356438.6 million expected in FY. 2008/2009, decreased by LE. 37301.4 million, a decline ratio of 10.5%. General budget expenditures are distributed on the following main chapters:

LE. million

• Wages and compensations of employees

earmarked fund

86134.6

• Purchase of goods & services .... earmarked fund

27099.1

• Interests .. earmarked fund

71065.8

• Subsidy, grants and social benefits ….

earmarked fund

73386.9

• Other expenditures .... earmarked fund

27058.2

• Purchase of non-financial assets .... . earmarked fund "investments"

33392.6

Total 319137.2

On distributing the above mentioned expenses, according to each of their chapters, on their items, we can conclude the following.

1- Wages and compensations for employees : Wage bill estimates are based on a set of indicators which are governed by laws and resolutions related to employees in the stat's central administration, local administration and services authorities, of which:

(B) Detailed presentation of general budget expenses and the analysis of their main components :

-43-

• Numbers of employees in posts. • The base wages and salaries established for employees in

accordance with provisions of law 47/1978. as amended. • Periodic incentives and allowances prescribed by the above

mentioned law. • Incentives given to employees in accordance with the

regulatory resolutions issued in this regard. • Remuneration and rewards for extraordinary efforts. • Social benefits governed by law no. 79/1975. • Special allowances determined by the state, year after year . • In-kind allowances established for some employees

categories, according to the nature of their work, especially, the application of first phase of teacher's allowance and second phase of cadre qualified allowances, in coordination with the Ministry of Education and Al Azhar for teachers' preparation, taking into account the increase in base salaries and its impact on allowances.

• The application of the second phase of doctors and nursing staff cadre.

• The application of law 116/2008, increasing allowance ratio given for scientific excellence of university and research centers' staffs.

• Requirements needed to improve income of mosque imams etc.

In light of the foregoing, wages and salaries estimates in the draft of state's general budget for FY. 2009/2010, reach about LE. 86134.6 million, compared to LE. 77179.2 million expected in FY. 2008/2009, increased by LE. 8955.4 million, an increase ratio of 11.6%. It is important to refer to the following: • The number of government incubments reaches 5.4 million

employee (other than economic authorities staff).

-44-

• The total salary average, monthly get by employee in light of wage bill and employees number, reaches about LE. 1237 monthly. Noteworthy to bridge the gap between lower and upper wages limits within those averages, which the government is exerting efforts to achieve it in the context of president Mobarak's instructions.

• The state continues in establishing employees social allowances year after year. Such social policy began from 1987/88 to FY. 2008/2009 totally reach a ratio of 295% of base salaries, including the allowance established by law no. 11/2008, amounting 30% of base salary, considering the inclusion of such allowances to base salary every five years. This entails additional burdens on general budget and the results of this inclusions, of increasing employees' wages.

• The following table no. (9) shows the burdens incurred by the stat to establish special social allowance as of 2000/2001 till 2008/2009:

Statement Law No. Increase percentage of base salary Total cost

LE. Million

2000/2001 Law No. (84) 2000 10%without a minimum or maximum limit 1065.3





2005/2006 Law No. (92) 2005 20%with a minimum of 30 pounds and without a maximum limit 3133.8

2006/2007 Law No. (85) 2006 10%with a minimum of 36 pounds and without a maximum limit 2778.9

Law No. (77) 2007 15%without a minimum or maximum limit 2397.0

Law No. (114) 2008 30%without a minimum or maximum limit 1100 *


2007/2008

-45

-


Table (9) Special Allowances Granted to State’s

Workers Since 2000/2001 until 2008/2009

-46-

Wages and compensations for employees funds reach about LE. 86134.6 million, represent the ratio of 26.9% of total expenses of stat's general budget, amounting to LE. 319137.2 million, and also represent the ration of 24.6% of public expenditure amounts LE. 349856.7 million.

-47-

The following table No. (10) shows the wage bill distribution on its main purposes:

(LE. Million)

Draft budget Expected Actual Statement

2010/2009 2009/2008 2008/2007 2007/2006 2006/2005

• Basic wages 17022.6 15212.4 13846.4 12571.2 11686.6

• Rewards 29693.9 26933.1 21942.5 18549.1 16036.1

• Specific allowances 7835.0 6706.8 3965.8 2015.1 1980.5

• Cash benefits 11332.9 12171.8 9050.6 7400.2 6344.0

• In-kind benefits 2033.9 1722.8 1572.7 1236.9 1088.5

• Insurance benefits 8686.2 8000.6 6165.2 5517.9 5094.0

• Other types of wages 5955.1 6431.7 6087.7 4605.5 4047.7

• Additional requirements 3575.0 0.0 207.7 256.8 441.7

Total 86134.6 77179.2 62838.6 52152.8 46719.1


Table (10) Distribution of Wages by Major

Items

-47-

ی ھ ت الع املین بالملی ار جن یض ا ش كل ( 9) تط ور األج ور وتعو

2010/2009 - 2006/2005

47 52 63 77 86

356

282222208

319

050

100150200250300350400450

فعلى 2006/2005 فعلى 2007/2006 فعلى 2008/2007 توقع 2009/2008 م مشروع موازنة2010/2009

نیھ ملیار ج

المصروفات األجور

ن المص روفات والن اتج المحل ي االجم الى ش كل (10) تط ور األج ور وتعویض ات الع املین كنس بة م

2010/2009 - 2006/2005

%22.6 %23.4 %22.3 %21.6%27.0

%7.6 %7.1 %7.0 %7.4 %7.3

%0%5

%10%15%20%25%30%35%40

فعلى 2006/2005 فعلى 2007/2006 فعلى 2008/2007 متوقع 2009/2008 مشروع موازنة2010/2009

نسبة األجور من المصروفات نسبة األجور من الناتج المحلي االجمالي

The following fig (9) shows development of employees wages and compensations during 2005/2006 – to 2009/2010.

The following fig (10) shows development employees wages and compensations ratio to expenses and GDP.

Figure 9: The development of workers wages and compensation (Billion pounds)

Billion pounds

Actual Actual Actual Expected Draft Budget 2009/2010

Expenditures Wages

Fig 10: Development of workers wages and compensation as ratio of Expenditures and GDP


Wages ratio of expenses Wages ratio of GDP

-49-

2- Purchase of goods and services: • Funds allocated for purchase of goods and services reflect

the state's requirements needed for government work process in various areas of the state's public services.

• In the context of purchase of goods, this is mainly related to medicines and food stuff needed for public hospitals, schools supplies, lighting and electricity requirements, weather for public lighting or needed for operating plants and equipment and funds allocated for water etc.

• In the area of services provision requirements, it is mainly related to the needed maintainance expenses in order to preserve assets and utilities, e.g. maintainance of irrigation and drainage means, maintainance of utilities and roads & pridges nets.

Services appropriations also include expenses on text books printing … etc, transport and transportation requirements, including cash allowance given to employees in remote regions. The following table (11) shows items of funds allocated for purchase of goods and services in state's general budget draft for FY. 2009/2010, amounting to LE. 27099.1 million, compared to the expected in FY. 2008/2009, amounting to LE. 24536.0 million, increased by LE. 2563.1 million.


2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

Raw materials 4121.5 ـ 3693.6 3101.4 2843.6 2576.9

Operating fuels, oil and ـmoving parts 756.3 900.5 640.9 536.9 566.0

Fuel, oil for cars ـ 82.0 78.1 60.7 54.5 47.0

Water and lighting ـ 7160.8 6686.2 2620.5 2273.2 1907.6

Maintenance expenses ـ 3268.1 2755.3 2401.1 2116.2 1769.8

Printing expenses ـ 1283.3 1203.3 1284.2 1249.7 1352.0

Money allowances for ـemployees in remote areas 825.2 1109.1 686.1 498.2 526.6

Other ـ 9601.9 8109.9 7675.1 7455.3 5674.9

Total 27099.1 24536.0 18470.0 17027.6 14420.8


LE. Million

ActualStatement

- 50 -

It is noted that the appropriations allocated for purchase of goods and services, which are estimated at LE. 27099.1 million , representing 8.5% of total operating expenses of LE.319137.2 million, and also represent 7.7% of total public expenditures of LE. 349856.7 million.

Table (11) Purchase of Goods and Services

-50-

ش كل (11) تط ور ش راء الس لع والخ دمات كنس بة م ن المص روفات والن اتج المحل ي االجم الى

2010/2009 - 2006/2005

%6.7%7.7

%6.4 %7.0%8.5

%2.3 %2.3 %2.0 %2.4 %2.3

%0

%5

%10

%15


نسبة شراء السلع والخدمات من المصروفات نسبة شراء السلع والخدمات من الناتج المحلي االجمالي

It should be noted that, the funds earmarked for purchase of goods and services, which are estimated at LE. 27099.1 million, represent the ratio of 8.5% of total operating expenses, amounting LE. 319137.2 million, and also constitute 7.7% of gross public expenditure of LE. 349856.7 million . The significant increase of funds allocated for purchase of goods and services is concentrated in water and lighting requirements and is not attributed to increasing such funds but dues to the adjustments made between electricity sector's payable accounts by government entities for previous years in one hand-and public treasury's payable accounts by this sector, which had accumulated over years for interest on loans re-lent by public treasury to Electricity sector.

The following fig (11) shows development of purchase of goods and services as a ratio to expenses and GDP.

3- Interests :

Interests estimates are the accrued interests on domestic and foreign loans, according to the maturity dates of such interests.

Fig11: Development of goods and services purchase as ratio of Expenditures and GDP

Proportion of goods and services purchase from expenditures

Proportion of goods and services purchase from GDP


-52-

Therefore, it is basically associated with government public debt, which reflects budget funding requirements in the form of public treasury bills or bonds, and domestic or foreign loans, according to the nature of the respective loan, which are normally associated with funding state's investments and composition of capital assets. The total benefits are estimated in state's general budget draft for FY. 2009/2010 at about LE. 71065.8 million, of which LE. 3586 million represent foreign debt interests, and the remainder is associated with domestic debt interests. The following table No. (12) shows Interests estimated in the draft budget, distributed on their items:

(LE. Million) Draft budget Expected Actual

Statement 2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

Domestic Interests • To banking system and other authorities

49837.3

31213.2

30759.0

28034.2

24618.8

• Investment loans Interests 15912.1 15823.9 15823.9 16167.1 8751.8

•Various domestic interests 1513.0 1213.4 0.0 300.1 450.2

Total 67262.4 48250.5 46582.9 44501.4 33820.9

Foreign Interests 3586.0 4452.5 3736.6 3033.3 2822.7

Expenditures related to public debt service

217.4 226.7 208.4 165.1 178.6

Total 71065.8 52929.7 50527.9 47699.8 36822.1 Source: Ministry of Finance

Table (12) Interests

-52-

بة م ن المص روفات والن اتج المحل ي االجم الى ش كل ( 12) تط ور الفـــ وائد كنس

2010/2009 - 2006/2005

%17.8%21.6

%18.1%14.6

%22.3

%6.0 %6.6 %5.7 %5.0 %6.0

%0

%5

%10

%15

%20

%25

%30

%35


نسبة الفوائد من المصروفات نسبة الفوائد من الناتج المحلي االجمالي

It is noted that loans interests represent 22.3% of total funds allocated for expenses of LE. 319137.2 million and represent 20.3% of total public expenditure of LE. 349856.7 million. It is very important to note that such interests, amounting to LE. 71065.8 million constitutes 6.0% of GDP. As the economic measurement of budget deficit would take into account excluding interests from public expenditure, in order to determine initial deficit in state's budget, therefore, initial deficit of state's general budget draft amounts only 2% of GDP. The following fig. (12) shows interests' development as a ratio to expenses and GDP:

4- Subsidy Grants and Social Benefits : Subsidy, in all its forms, contributes in alleviating citizens' burdens, particularly low-income segments, and also constitutes increase in their real incomes.

Fig12: Development of Interests as ratio of Expenditures and GDP

Actual Actual Actual Expected Draft Budget

2009/2010

Proportion of Interests from expenditures Proportion of Interests from GDP

-54-

Believing that, the state should provide subsidy, recent years the states is rising funds allocated for subsidy and is developing it, in addition to increasing its distribution efficiency in order to achieve the targeted purposes of subsidy. This chapter includes also social benefits that are covered by state's security pensions for poor brackets and the stat's liabilities incurred to contribute in pension systems subsidy. Estimates of chapter IV "Subsidy, grants and social benefits" in state's general budget draft for FY. 2009/2010 reach about LE. 73386.9 million, representing the ratio of 23% of general budget expenses of LE. 319137.2 million and also represent the ratio of 21% of total public expenditure of LE. 349856.7 million. The following table No. (13) shows the distribution of such allocations on their relevant items:


2009/2010 2008/2009 2007/2008 2006/2007 2005/2006

1- Subsidy:

●Subsidy for Supply Commodities 13841.4 23477.0 16444.5 9405.9 9406.6

●Subsidy of petroleum products 33694.0 58642.7 60248.8 40129.5 41778.1

● Other Subsidies Elements 12239.6 14911.6 7512.0 4423.4 3059.9

Total (1) 59775.0 97031.3 84205.3 53958.8 54244.6

2- Grants: 3523.0 3584.3 3890.2 2599.4 2174.2

3- Social Benefits 6663.9 31938.3 4049.9 1611.6 12335.6

Basically includes Public Treasury contribution to pension funds and social solidarity pensions

4-Other 3425.1 258.1 225.6 272.5 142.4

Total 73386.9 132812.0 92371.0 58442.3 68896.8


It is noted that, social benefits and the included treasurycontributions in pension funds are mostly associated with the increases granted to pensioners over the previous years

Statement

-55-

Actual

( LE. Million)

Table (13) Subsidy, Grants and Social

Benefits

-56-

It should be noted that social benefits and treasury contributions in pension funds are mostly associated with the increases granted to pensioners during previous years. The following table No. (14) shows increases granted to pensioners from 2000/2001 to 2008/2009 and the costs thereof.

Statement Law No. Increase Ratio of Pension Total Costs

LE.Million

2000/2001 Law No. 85 / 2000 10%without a minimum or maximum 712.4

2001/2002 Law No. 19 / 2001 10%with a minimum of LE.10 and a maximum of LE. 60 775.7




2005/2006 Presedential Decree No. 176 / 2005 15%up to a maximum of LE. 90 1618.4

2006/2007 Presedential Decree No. 160 / 2006 7.5%with a minimum of LE.10 and a maximum of LE. 60 1431.0

Presedential Decrees No. 169, 175 / 2007 10%up to a maximum of LE. 70 1876.4

Law No. 114 / 2008 20%up to a maximum of LE.100 600 *2008/2009 Law No. 114/2008 20%up to a maximum of LE.100 3600.0

For May and June of FY. 2007/2008 *

-57

-

2007/2008


Table (14) Increases Granted to Pensioners Since 2000/2001 until 2008/2009

-57-

شكل (13) تطور الدعم والمنح والمزایا االجتماعیة كنسبة من المصروفات والناتج المحلي االجمالى2010/2009 - 2006/2005

%33.2

%26.1

%32.6

%11.2%7.9

%10.3%12.8

%6.2

%22.9

%37.4

%0%5

%10%15%20%25%30%35%40%45

فعلى 2006/2005 فعلى 2007/2006 فعلى 2008/2007 متوق ع 2009/2008 مش روع موازن ة 2010/2009

نسبة الدعم والمنح والمزایا االجتماعیة من المصروفات نسبة الدعم والمنح والمزایا االجتماعیة من الناتج المحلي االجمالي

5- Other Expenses : Other expenses are expenses allocated for national inevitable requirements and expenses associated with taxes and duties performance, as well as some carried over surpluses in service authorities. Total expenses in stat's general budget draft for FY. 2009/2010 reach about LE. 28058.0 million, compared to LE. 25788.7 million expected in FY. 2008/2009. 6- Purchase of non-financial assets "investments" : Purchase of non-financial assets "investments' funds are estimated in the draft budget for FY. 2009/2010 at about LE. 33392.6 million , compared to LE. 43192.9 million expected in FY. 2008/2009. Generally, funds allocated for purchase of non-financial assets are distributed as follows :

Figure 13: Development of subsidy, grants and social benefits as ratio of Expenditures


Proportion of subsidy, grants and social benefits from Expenditures

Proportion of subsidy, grants and social benefits from GDP

-59-

(LE. Million) Draft Budget Expected Actual

Statement 2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

= Fixed assets: x Residential buildings 141.3 314.3 155.9 281.6 247.8 x Nonresidential buildings 7279.8 6444.1 4118.4 3782.8 3662.4 x Constructions 13667.5 24579.2 15980.0 11371.6 8299.4 x Means of transport 481.9 412.5 509.4 219.9 495.8 x Means of transportation 140.3 83.9 150.4 70.4 51.9 x Machinery and

equipment 6140.4 6914.3 6181.4 4237.2 3969.2 x Tools 96.5 332.1 162.5 100.0 126.3 x Fittings 689.6 680.6 466.7 447.9 408.2 x Animal and water

resources (cultivated assets)

17.0 15.0 9.7 12.2 18.5 • Expenditures of first

operating 590.7 438.6 452.0 404.9 328.4 Total fixed assets 29244.9 40214.6 28186.4 20928.4 17606.9

= Non-produced assets 441.2 335.4 270.0 155.1 188.9 = Interest before operation 27.0 27.6 38.9 44.4 54.6 = Scholarships 686.0 658.8 522.7 396.9 307.4 = Feasibility studies for investment projects 1447.5 1086.1 1321.0 1067.4 999.5 = Advance payments 546.0 870.4 3850.5 2906.2 2054.5 = Prices variations for contractors 300.0 0.0 1.4 0.0 0.0 = General contingencies for purchase of non-financial assets

700.0 0.0 0.0 0.0 0.0

Purchase of non-financial assets (investments)

33392.6 43192.9 34190.9 25498.4 21211.8


Table (15) Purchase of non-Financial Assets

"Investments"

-59-

شكل (14) تطور شراء األصول غیر المالی ة كنسبة من المصروفات والناتج المحل ي االجم الى

2010/2009 - 2006/2005

%10.1 %11.3 %12.1 %12.1

%3.4 %3.4 %3.8 %4.1

%10.5

%2.8

%0

%5

%10

%15

%20

%25


نس بة االس تثمارات م ن المص روفات نس بة االس تثمارات م ن الن اتج المحل ي االجم الي

The following fig. (14) shows development of funds allocated for purchase of non-financial assets and its ratio to expenses and GDP.

Figure 14: Development of non-capital assets as ratio of Expenditures and GDP


Proportion of Investments from Expenditures Proportion of Investments from GDP

-60-

شكل (15) تطور االیرادات العامة واالیرادات الضریبیة بالملیار جنیھ2010/2009 - 2006/2005

98 114 137167 146

290221

180151225

050

100150200250300350


ملیار جنیھ

االیرادات العامة االیرادات الضریبیة

Public revenues in state's general budget draft for FY. 2009/2010 are estimated at about LE. 224986.5 million, compared to LE. 289732.7 million are expected in FY. 2008/2009, decreased by LE. 64746.2 million, a ratio of 22.3%. Public revenues are distributed on their main chapters as follows: LE. million

• Tax Revenues … are estimated at 145543.9 • Grants … are estimated at 7700.0 • Other revenues … are estimated at 71742.6

Total 224986.5 The following Fig. (15) shows development of public revenues and Tax revenues:

(C) Detailed view of budget revenues chapters and analysis of their main components :

Figure 15: Development of General Revenues and Tax Revenues (billion pounds)

Billion


General Revenues Tax Revenues

-61-

شكل (16) ھیكل الض رائب مشروع موازنة 2010/2009

ضرائب ورسوم أخرى%7

الجمارك%10

الضرائب على المبیعات%34

الضرائب العامة %49

On distributing the referred revenues according to each of their chapters on their items, we can conclude the following public revenues are mainly : 1- Tax Revenues :

- General Taxes. - Sales Taxes . - Customs. - Other Tax revenues.

The following Fig. (16) shows the composition of Tax revenues:

• General Taxes :

General taxes estimates have been prepared in light of the macroeconomic indicators, such as GDP, consumption and investment rates, as well as impacts of global financial crisis, which had impact in reducing oil and Suez Canal taxes, due to the decreased world prices, the dropping international trade volume and the traffic in Suez Canal.

The following table No. (16) shows general taxes composition:

Figure 16: Tax structure Draft Budget 2009/2010

Customs 10%

Sales tax 34%

General Tax 49%

Taxes and other charges 7%

-63-

(LE. Million)

Draft Budget Expected Actual Statement

2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

• Taxes from Petroleum 18453.0 22368.7 29268.4 25379.8 23619.7

• Taxes from Suez Canal 9029.0 10453.5 10268.0 9144.3 7321.0

• Taxes from CBE 3344.7 3341.0 4284.5 4095.3 3841.8

• Taxes on other corporate profits 16512.8 18347.5 15997.3 14136.0 7320.4

• Taxes on industrial and

commercial activity

4396.4 4884.9 3779.2 3173.2 3595.0

• Tax on professional activity or

non-commercial

308.9 343.3 295.9 225.0 167.8

• Taxes on Payroll 7951.3 8834.7 6761.1 5410.3 4205.7

• Stamp Tax 6546.9 7274.5 4893.0 4025.8 4190.5

• Taxes on bills & bonds returns 4733.0 1053.0 ـ ـ ـ

• Other Taxes 607.3 13674.7 362.6 490.4 483.0 Total 71883.3 90575.8 75910.0 66080.1 54744.9


Table (16) General Taxes

-64-

• Sales Taxes : Sales taxes estimates in the draft budget have not been affected directly by the global financial crisis, as they are associated with taxes on domestic goods and services, basically related to economic activity within the country, which is expected to grow slowly, if compared to growth rates in previous years.

The following table No. (17) shows general taxes composition:

(LE. Million) Draft

Budget Expected Actual

Statement 2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

• Sales tax on local commodities 9689.3 10766.0 8927.2 6185.8

5550.0

• Sales tax on imported goods 15557.4 17441.5 16520.7 11849.8

9932.0

• Sales tax on goods in Table(1) 15985.5 15817.0 7190.8 6478.8

6487.2

• Tax on services 8877.0 8322.8 7058.0 6057.0

5487.8


Table(17) Sales Taxes

-65-

• Customs : When viewing customs tax, we should not focus on its financial impact on the state's revenues or budget deficit, but we should focus on such tax, as one of the main instruments of financial policy used in managing national economy, and as a significant instrument contributes in production increase, enhancing national industries and achieves fair competitive protection. Customs tax is also considered one of the major instruments used to expand investments prospects, to create new job opportunities, promote exports, as well as be used to reduce domestic production cost, in an attempt to control markets and reduce the inflationary pressures in some vital sectors and goods. So, the steps taken to reform customs tax and customs tariff structure as of 2004 till now, represent correction of trend of using customs tax's sound economic concept. It also takes into account effects arising from the application of customs tariff cuts, stipulated by presidential decree no. 51/2009 in order to face the repercussions of the global financial crisis.

-66-

The following table No. (18) shows customs tax composition:

(LE. Million)

Draft budget Expected Actual Description

2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

• Ad valorem customs tax 13387.9 14133.7 12956.2 9813.8 9177.8

• Customs taxes on tobacco

and cigarettes

440.4 422.4 405.0 418.7 375.8

• Taxes on exports 1.5 21.6 518.3 190.0 ـ

• Other 190.0 179.3 140.7 115.5 98.5

Total 14018.3 14925.4 14020.2 10369.6 9653.6


Table No. (18) Customs

-67-

* Other Tax Revenues: Other tax revenues are concentrated on revenues development fees imposed by law no 147/1984 as amended, as well as on suez canal royalty and consular fees etc. All these resources will be estimated in light of the regulating laws and resolutions.

The following table No. (19) shows details of Tax revenues:

(LE. Million)


2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

• Resource Development fees 3849.6 3442.0 2301.1 2033.6 2067.8

• Royalties on Suez Canal 1197.0 1518.7 1453.5 1163.2 1018.1

• Consular procedures fees 890.4 782.4 716.5 569.1 538.8

• Fees on Lighthouses and ports 788.0 763.2 699.5 659.6 605.6

• Tax revenues of localities

(lands, buildings, casinos, etc.)

717.4 386.7 749.4 658.4 980.4

• Property transferring fees 668.6 601.0 534.2 461.0 327.6

• Crossing fees(SUMED) 456.0 456.0 456.0 1308.0 0.0

• Administrative expenditures of

import operations

416.5 469.5 432.0 330.7 217.6

• Fees on work permits 137.0 122.1 108.6 88.2 75.5

• Other tax revenues 412.7 675.9 117.3 32.9 91.2


Table No. (19) Other Tax Revenues

-68-

Table No. (20) Current and Investment Grants

2- Grants: the grants targeted to be collected in the state's general budget draft for FY. 2009/2010 are estimated at LE. 7700 million, some of which is allocated to meet current expenses and the other is allocated to meet investment expenses. The following table No. (20) shows grants in the draft budget, compared to previous years:

(LE. Million)

Draft Budget Expected Actual Statement

2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

Current Grants:

• American grants to

subsidize the state general

budget or European

reallocated grants

6389.9

6167.7

258.0

1989.2

510.1

• Other 147.6 111.8 177.9 96.1 73.2

Total Current Grants 6537.5 6279.5 435.9 2085.3 583.3

• Investment Grants

• From foreign governments:

952.1 223.4 896.9 1408.4 1244.3

From international

organizations

115.0 25.0 29.1 288.2 360.6

• From governmental entities 95.4 80.1 100.7 104.2 191.0

Total Investment Grants 1162.5 328.5 1026.7 1800.8 1795.9


-69-

3- Other Revenues: Other revenues represent the return on the stat's capital investment achieved in both petroleum and suez canal organizations, the central bank, various economic authorities and the stat's share in corporates profits. It also includes sources of special funds and accounts, which have their offsetting amount within expenses of the state's general budget.

The following table No. (21) shows details of the main other revenues.

(LE. Million)


2009/2010 2009/2008 2008/2007 2007/2006 2006/2005

• Petroleum Cooperation surplus 10802.0 22143.3 25282.1 11013.7 12533.1 • Suez Canal surplus 11829.5 15680.3 15097.7 11930.7 10487.5 • CBE surplus 228.0 130.0 32.0 0.0 0.0 • Economic Authorities surplus 2937.9 2178.8 3046.7 581.0 475.7 • Corporate profits (public

enterprises sector and other companies)

5634.0 3950.0 2648.3 2222.3 865.5

• Special funds and accounts revenues 8346.9 9686.0 9392.9 8086.2 5753.9 • Judicial fees and fines 1090.4 877.0 859.1 728.1 693.9 • Return of government services 2549.0 2259.0 1735.0 959.7 1273.6 • Interest receipts 6101.9 7521.3 1334.9 1342.7 1313.1 • Royalty on oil 1477.0 2773.4 1444.0 1797.0 3590.0 • Proceeds from third mobile phone

license / Third generation 2350.0 0.0 3108.0 15280.0 0.0

• Miscellaneous revenues from Petroleum Cooperation

6000.0 3900.0 240.0 720.0 6899.2

• Sales proceeds from urban community lands

0.0 5000 6100 0.0 0.0

• Actuarial surpluses of insurance funds

0.0 24344 0.0 0.0 0.0

• Securitization for liquidity (land sales proceeds)

5000.0 4800 0.0 0.0 0.0

• Receipts from prices variations of natural gas sale

1200.0 1415.0 0.0 0.0 0.0

• Other 6196.0 9400.6 12425.4 7341.4 7222.9 General Total 71742.6 116058.7 82746.1 62002.8 51108.3


Table (21) Other Revenues

-70-

This section deals with statistical supplements; five main supplements:

Presents the detailed distribution of uses and resources of

general budget in accordance with economic classification of

the state’s activities.

First Supplement

Presents the detailed distribution of uses and resources of

general budget in accordance with administrative

classification.

Sٍecond Supplement

Presents the major components of functional classification. Third Supplement

Presents expenditures by functional classification. Fourth Supplement

Presents features of executing a budget responding to

gender in the draft of state’s general budget..

Fifth Supplement

Section II

Statistical Supplements of the State General Budget Draft

For FY. 2009/2010

- 71 -

First Supplement

Detailed distribution of uses and resources of

The State General Budget According to Economic

Classification of the State Activities

-A-

Page no. Table no. Description

74 1 The overall picture of the State General Budget

2005/2006 - 2009/2010

75 2 Resources (chapter I)- taxes - of the State General

Budget 2005/2006 - 2009/2010

77 3 Resources (chapter II)- grants - of the State General

Budget 2005/2006 - 2009/2010

78 4 Resources (chapter III)- other revenues - of the State

General Budget 2005/2006 - 2009/2010

80 5 Resources (acquisition proceeds) - of the State

General Budget 2005/2006 - 2009/2010

81 6 Resources (financing sources) - of the State General

Budget 2005/2006 - 2009/2010

82 7 Uses (chapter I)- wages and compensation for

employees - of the State General Budget 2005/2006 -

2009/2010

83 8 Uses (chapter II)- purchase of goods and services - of

the State General Budget 2005/2006 - 2009/2010

84 9 Uses (chapter III)- interests - of the State General

Budget 2005/2006 - 2009/2010

First Supplement

Tables

Description Table no. Page no.

85 10 Uses (chapter IV)- subsidy, grants, and social

benefits - of the State General Budget 2005/2006 -

2009/2010

86 11 Uses (chapter V)- other expenditures - of the State

General Budget 2005/2006 - 2009/2010

87 12 Uses (chapter VI)- purchase of non-financial assets

"investments" - of the State General Budget

2005/2006 - 2009/2010

88 13 Uses (chapter VII)- acquisition of domestic and

foreign financial assets - of the State General Budget

2005/2006 - 2009/2010

89 14 Uses (chapter VIII)- repayment of loans - of the

State General Budget 2005/2006 - 2009/2010

-B-

- 90 -

Second Supplement

Detailed Distribution

Of Uses and Resources

of the State General Budget

According to the Administrative

Classification

-A-

Page no. Table no. Description

93 1 The overall picture of the State General Budget

2008/2009 - 2009/2010

94 2-A Resources (chapter I)- taxes - of the State General

Budget 2008/2009 - 2009/2010

98 2-B Resources (chapter II)- grants - of the State General

Budget 2008/2009 - 2009/2010

99 2-C Resources (chapter III)- Other revenues - of the State

General Budget 2008/2009 - 2009/2010

102 2-D Resources (acquisition proceeds) - of the State

General Budget 2008/2009 - 2009/2010

103 2-E Resources (financing sources) - of the State General

Budget 2008/2009 - 2009/2010

104 3-A Uses (chapter I)- wages and compensation for

employees - of the State General Budget 2008/2009 -

2009/2010

109 3-B Uses (chapter II)- purchase of goods and services - of

the State General Budget 2008/2009 - 2009/2010

113 3-C Uses (chapter III)- interests - of the State General

Budget 2008/2009 - 2009/2010

Second Supplement Tables

-B-

Description Table no. Page no.

114 3-D Uses (chapter IV)- subsidy, grants and social benefits

-of the State General Budget 2008/2009 - 2009/2010

116 3-E Uses (chapter V)- other expenditures - of the State

General Budget 2008/2009 - 2009/2010

118 3-F Uses (chapter VI)- purchase of non-financial assets

"investments" - of the State General Budget

2008/2009 - 2009/2010

119 3-G Uses - acquisition of domestic and foreign financial

assets - of the State General Budget 2008/2009 -

2009/2010

120 3-H Uses – domestic and foreign loans repayment - of the

State General Budget 2008/2009 - 2009/2010

-121-

Third Supplement

Demonstration of the Main Components

of the Functional Classification

-128-

Fourth Supplement

Expenses according to the functional classification

Tables of Supplement (4)


Development of expenses compared to ex years 2-a 132

Public Services Sector 2-a/1 134

Sector of Public Order and Public Security Affairs 2-a/2 135

Economic Affairs Sector 2-a/3 136

Environment Protection Sector 2-a/4 137

Housing and Community Utilities Sector 2-a/5 138

Health Sector 2-a/6 139

Recreation, Culture and Religious Affairs Sector 2-a/7 140

Education Sector 2-a/8 142

Social Protection Sector 2-a/9 143

Administrative Distribution of Expenses 2-b 145

Administrative Distribution of Expenses – Public

Services Sector

2-b/1 146

Administrative Distribution of Expenses – Public

Order and Security Affairs Sector

2-b/2 147

Administrative Distribution of Expenses – Economic

Affairs Sector

2-b/3 148

Administrative Distribution of Expenses –

Environment Protection Sector

2-b/4 149

Administrative Distribution of Expenses – Housing

and Community Utilities Sector

2-b/5 150

Administrative Distribution of Expenses – Health

Sector

2-b/6 151

-A-

-B-


Administrative Distribution of Expenses – Recreation,

Culture and Religious Affairs Sector

2-b/7 152

Administrative Distribution of Expenses – Education

Sector

2-b/8 153

Administrative Distribution of Expenses – Social

Protection Sector

2-b/9 154

Total Chapters Compared to Previous Years 2-c 155

Administrative Distribution of Expenses – Wages and

Compensation for Employees

2-c/1 156

Administrative Distribution of Expenses – Purchase

of Goods and Services

2-c/2 157

Administrative Distribution of Expenses - Interests 2-c/3 158

Administrative Distribution of Expenses – Subsidy,

Grants and Social Benefits

2-c/4 159

Administrative Distribution of Expenses – Other

Expenditure

2-c/5 150

Administrative Distribution of Expenses – Purchase

of Non-financial Assets (Investments)

2-c/6 161

-C-

Figures of Supplement (4)

Statement Fig. No. Page No.

Distribution of Expenses According to Functional

Classification

A

Public Services Sector B

Public Order and Security Affairs Sector C

Economic Affairs Sector D

Environment Protection Sector E

Housing and Community Utilities Sector F

Health Sector G

Recreation, Culture and Religious Affairs Sector H.I

Education Sector J

Environment Protection Sector K,L

-162-

Fifth Supplement

Features of the Application of Budget

Responding to Gender in

State General Budget Draft

for Fiscal Year 2009/2010

Draft 2008/2009

Budget

2009/2010 2007/2008 2006/2007 2005/2006

# Revenues 224986.5 289732.7 221403.8 180214.6 151265.9

- Taxes 145543.9 167066.0 137194.9 114325.8 97778.4

- Grants 7700.0 6608.0 1462.6 3886.1 2379.2

- Other revenues 71742.6 116058.7 82746.3 62002.8 51108.3

# Expenditures 319137.2 356438.6 282290.1 222029.2 206984.3

- Wages and compensation of employees 86134.6 77179.2 62838.6 52152.8 45759.6

- Purchases of goods and services 27099.1 24536.0 18470.0 17027.6 14420.8

- Interests 71065.8 52929.7 50527.9 47699.8 36822.1

- Subsidies, grants and social benefits 73386.9 132812.0 92371.0 58442.3 68994.9

- Other expenditures 28058.2 25788.7 23891.7 21208.4 19775.0

- Purchase of non-financial assets (investments) 33392.6 43192.9 34190.9 25498.4 21211.8

Cash deficit (surplus) 94150.7 66705.9 60886.3 41814.6 55718.4

# Net acquisition of financial assets 729.5 4727.1 235.9 12882.7 -6159.5

- Proceeds of lending and sales of financial assets without privatization proceeds

2832.1 884.2 1650.9 -1360.4 8890.1

- Acquisition of domestic and foreign financial assets without contribution of treasury in financing of restructuring fund

3561.7 5611.4 1886.8 11522.3 2730.6

Overall deficit 94880.3 71433.0 61122.2 54697.4 49558.9

# Net borrowing 94880.3 71333.0 60449.8 54525.2 50259.0

- Borrowing and issuance of securities other than shares 122038.1 91714.9 69981.2 62244.0 74773.0

- Repayment of domestic and foreign loans 27157.8 20381.9 9531.4 7718.9 24514.1

# Net privatization receipts 0.0 100.0 672.5 172.2 126.1

Privatization receipts 0.0 200.0 672.5 9962.0 1351.1

- Treasury contribution in financing of restructuring fund 0.0 100.0 0.0 9789.8 1225.0

∆ G.D.P. 1181000 1040000 896500 744800 617700

∆ Revenues as a percentage to G.D.P. 19.1% 27.9% 24.7% 24.2% 24.5%

∆ Expenditure as a percentage to G.D.P. 27.0% 34.3% 31.5% 29.8% 33.5%

∆ Cash Deficit/ (Surplus) as a percentage to G.D.P. 8.0% 6.4% 6.8% 5.6% 9.0%

∆ Overall deficit as a percentage to G.D.P. 8.0% 6.9% 6.8% 7.3% 8.0%


-74-

(LE. Million)

Table No. (1) Overall Picture

DescriptionActual

2005/2006 - 2009/2010Of The State General Budget

Expected

Draft 2008/2009Budget

2009/2010 2007/2008 2006/2007 2005/2006

# Resources 349856.7 382531.8 293708.4 251060.1 236280.1

# Revenues 224986.5 289732.7 221403.8 180214.6 151265.9

- Taxes 145543.9 167066.0 137194.9 114325.8 97778.4

= Tax on income, profits and capital gains 58749.1 80629.9 67058.7 58534.9 48268.1

* Taxes on income generated from employment 9766.6 10851.7 7351.2 6191.5 5415.8

* Taxes on individuals income other than 4705.3 5328.2 4101.5 3497.7 3958.4

x Taxes on non commercial professions 308.9 343.3 295.9 225.0 167.8

x Development fees on net non-commercial professions

0.0 0.0 0.0 0.0 0.0

x Taxes on industrial and commercial activities 4396.4 4884.9 3779.2 3173.2 3595.0

x Other branches 0.0 100.0 26.4 99.6 195.6

* Capital gains taxes 40.5 45.0 42.7 30.9 6.4

* Tax on corporate profits 44236.7 51405.0 55563.3 48814.8 38887.5x From the Egyptian general petroleum corporation and the

18453.0 22368.7 29268.4 25379.8 23619.7

x From Suez Canal 9029.0 10453.5 10268.0 9144.3 7321.0

x From Central Bank of Egypt 151.9 135.3 0.0 0.0 0.0

x Other companies 16512.8 18347.5 15997.3 14136.0 7320.4

x Development fees on net profits of those stipulated in Article (111) in law no. (157)/1981

90.0 100.0 29.6 151.5 400.5

x Other branches 0.0 0.0 0.0 3.2 225.8

x Other miscellanious branches 0.0 13000.0 0.0 0.0 0.0

= Taxes on property 8105.8 4119.9 2052.2 1787.9 1213.7* Recurrent taxes on immovable property 634.2 564.9 407.3 352.4 329.7

* Taxes on financial commercial and capital 5401.6 1654.0 534.2 461.0 327.6

* Taxes on cars 2070.0 1901.0 1110.7 974.4 556.4

= Taxes on goods and services 61375.6 64082.7 49746.5 39435.7 34698.9

* General sales tax 25246.7 28207.5 25447.9 18035.6 15482.0

x On local commodities 9689.3 10766.0 8927.2 6185.8 5550.0

x On imported goods 15557.4 17441.5 16520.7 11849.8 9932.0

* Sales tax on services 8877.0 8322.8 7058.0 6057.0 5487.8

x Hotel and restaurant services for tourists 2276.1 2134.0 1908.3 1471.1 1390.9

x Operating services for others 2645.7 2480.5 2120.6 1791.1 1802.1

x International and local communication services 3623.9 3397.6 2743.3 2587.4 2030.3

x Other services 331.3 310.7 285.8 207.5 264.4


DescriptionActual

(LE. Million)

Expected

-75-

Chapter 1- (Taxes)


Table (2) Resources


2009/2010 2007/2008 2006/2007 2005/2006

Taxes on goods table (1) 15985.5 15817.0 7190.8 6478.8 6487.2

x Taxes on goods table (1) domestic 15307.6 15280.1 7163.5 6413.8 6431.1

x Taxes on goods table (1) imported 677.9 536.9 27.3 65.0 56.1

* Taxes on specific services 995.7 901.6 684.2 594.8 681.5

* Stamp tax (exclude stamp tax on salaries) 4731.6 5257.5 4302.9 3244.7 2980.5

* Resource development fees (except revenues exceeding L.E 18000, taxes on cars)

1494.6 1302.0 1039.6 796.8 1018.2

* Taxes on use of goods and on permission to use goods or perform activities

4044.4 4274.3 4023.1 4227.9 2561.8

= International trade taxes 14018.3 14925.4 14020.2 10369.6 9653.6

* Excises on imports 13828.3 14556.1 13361.2 10232.5 9553.7

x Ad Valorem customs taxes 13387.9 14133.7 12956.2 9813.8 9177.8

x Customs taxes on cigarettes and tobacco 440.4 422.4 405.0 418.7 375.8

* Taxes on other international trade 190.0 369.3 659.0 137.1 99.9

= Other taxes 3295.2 3308.1 4317.3 4197.7 3944.2

* On businesses 3295.2 3308.1 4317.3 4197.7 3944.2

x Receipts from transferred capitals from the central bank 3192.8 3205.7 4284.5 4151.5 3863.8

x Other revenues 102.4 102.4 32.8 46.2 80.4


-76-

DescriptionActual

(LE. Million)

Expected

Chapter 1- (Taxes)


Table (2) Resources


2009/2010 2007/2008 2006/2007 2005/2006

- Grants 7700.0 6608.0 1462.6 3886.1 2379.2

= Grants from foreign governments 7342.1 6391.1 1154.9 3397.7 1754.4

* Current 6389.9 6167.7 258.0 1989.2 510.1

* Capital 952.1 223.4 896.9 1408.4 1244.3

x for financing investments 952.1 223.4 896.9 1408.4 1243.5

x Other 0.0 0.0 0.0 0.0 0.8

= Grants from international organizations 120.8 25.0 109.3 288.8 361.5

* Current 5.8 0.0 80.2 0.7 0.9

* Capital 115.0 25.0 29.1 288.1 360.6

x for financing investments 115.0 25.0 29.1 286.1 360.6

x Others 0.0 0.0 0.0 2.0 0.0

= Grants from government entities 237.2 191.9 198.4 199.6 263.2

* Current 141.8 111.8 97.7 95.4 72.2

* Capital 95.4 80.1 100.7 104.2 191.0

x For financing investments 95.4 80.1 100.7 103.9 191.0

x Other 0.0 0.0 0.0 0.3 0.0


-77-

DescriptionActual

(LE. Million)

Expected

Chapter 2- (Grants)


Table (3) Resources


2009/2010 2007/2008 2006/2007 2005/2006

-Other revenues 71742.6 116058.7 82746.3 62002.8 51108.3

= Property income 41622.2 55266.5 52455.2 45110.2 36372.9

* Earned interests from 6101.9 7521.3 1334.9 1342.7 1313.2

x Bonds 5.0 15.0 0.0 1.5 86.0

x Lending 4543.0 4411.0 11.6 100.0 12.7

x The re-lending (including the interest of foreign loans re-lent by public treasury)

1360.2 2849.3 1043.0 882.3 1072.6

x Credit interests 190.6 215.0 277.7 186.3 141.4

x Others 3.1 31.0 2.6 172.6 0.4

* Dividends 31437.3 44087.4 46111.5 25749.8 24363.4

x Private sector companies 25.0 17.0 0.0 0.0 0.0

x Economic authorities 2937.9 2178.8 3046.7 581.0 475.7

x Central Bank of Egypt 228.0 130.0 32.0 0.0 0.0

x Public sector companies 507.0 433.0 -135.7 104.2 345.2

x Public enterprise sector companies

5102.0 3500.0 2784.0 2118.1 520.3

x Petroleum Authority 10802.0 22143.3 25282.1 11013.7 12533.1

x Suez Canal 11829.5 15680.3 15097.7 11930.7 10487.5

x Profits of securities 5.8 5.0 4.7 2.1 1.6

* Rent 1733.0 2970.8 1900.8 2737.7 10696.3

x Oil royalty 1477.0 2773.4 1444.0 1797.0 3590.0

x Rent of government lands 113.4 81.0 49.3 44.7 35.7

x Revenue from mines 25.2 20.0 28.3 21.7 19.2

x Rent of public utility administrated by localities

116.6 96.0 138.9 154.0 151.9

x Tourist regions revenues 0.7 0.4 0.3 0.3 0.4

x Others from Petroleum Authority 0.0 0.0 240.0 720.0 6899.2

* Other property income 2350.0 687.0 3108.0 15280.0 0.0

x Third mobile phone license 0.0 0.0 0.0 15280.0 0.0

x Third-generation mobile 2350.0 0.0 3108.0 0.0 0.0

x Receipts from (Cement-iron) licenses

0.0 687.0 0.0 0.0 0.0


DescriptionActual

(LE. Million)

Expected

-78-

Chapter 3- Other Revenues


Table (4) Resources


2009/2010 2007/2008 2006/2007 2005/2006

= Proceeds from the sale of goods and services

13202.3 14287.7 12032.0 9774.0 7878.6

x Current resources from special funds and accounts

8346.9 9686.0 9392.9 8086.2 5753.9

x Other service revenues 3639.4 3135.7 2588.0 1597.9 2073.5

x Sale of inventories 16.0 51.0 51.1 90.0 51.3

x Proceeds from variation sale prices of natural gas

1200.0 1415.0 0.0 0.0 0.0

= Compensation and fines 310.5 287.9 252.4 237.2 205.6

= Voluntary Transfers 71.7 290.0 556.8 462.3 1407.7

= Miscellaneous revenues 16535.9 45926.6 17449.9 6419.1 5243.5

* Current 8301.0 32198.5 5504.8 1864.0 1226.4

* Capital 8234.9 13728.1 11945.1 4555.1 4017.2

x Decrease in advance payments of investment funding

0.0 687.0 2149.6 2104.9 1827.8

x Other capital revenues and resources to fund investments

3020.5 3105.4 3388.5 2224.3 1834.7

x Others 5214.5 9935.7 6407.0 225.9 354.6


DescriptionActual

(LE. Million)

Expected

-79-

Chapter 3- Other Revenues

2005/2006 - 2009/2010

Of The State General Budget

Table (4) Resources


2009/2010 2007/2008 2006/2007 2005/2006

# Acquisition Proceeds 2832.1 1084.2 2323.4 8601.6 10241.3

- Proceeds of lending and sales of financial assets and other assets

2832.1 1084.2 2323.4 8601.6 10241.3

= Proceeds lending and sales of domestic financial assets

2832.1 1084.2 2323.4 8601.6 10241.3

* Collected installments from lending 2832.1 884.2 1649.0 1769.4 1512.8

x From economic authorities 198.2 5.0 4.7 103.5 388.6

x From public sector companies 0.0 0.0 0.5 0.6 -299.3

x From budget entities (included installments of foreign loans re-lent by the treasury)

558.3 650.0 1351.4 1486.3 1235.3

x From others entities 2075.6 229.2 292.4 179.0 188.2

* Proceeds from the sale of assets and equity 0.0 0.0 1.9 -3129.8 7377.3

x From public enterprise sector companies 0.0 0.0 0.0 -3129.8 7377.3

x From others entities 0.0 0.0 1.9 0.0 0.0

* Privatization receipts 0.0 200.0 672.5 9962.0 1351.1


-80-

DescriptionActual

(LE. Million)

Expected

Acquisition Proceeds


Table (5) Resources


2009/2010 2007/2008 2006/2007 2005/2006

# Financing sources 122038.1 91714.9 69981.2 62244.0 74773.0

-Borrowing and issuance of securities other than shares

122038.1 91714.9 69981.2 62244.0 74773.0

= Borrowing and issuance of domestic securities

118588.2 89098.6 63294.0 55685.4 66463.4

* Issuance of securities other than shares

118572.4 88969.0 42674.0 15147.0 50015.8

x Public treasury bonds 73000.0 54000.0 14892.0 -366.0 30786.0

x Public treasury bills 45572.4 34969.0 27782.0 15513.0 276.2

x Others 0.0 0.0 0.0 0.0 18953.6

* Borrowing 15.8 129.6 20620.0 40538.4 16447.5

x From National Investment Bank for financing investments

0.0 0.0 0.0 0.0 14670.9

x From National Investment Bank to finance other purposes

0.0 0.0 0.0 0.0 1776.6

x Borrowing for financing investments

15.8 30.3 0.0 18444.5 0.0

x Borrowing from other sources 0.0 99.3 20620.0 22093.9 0.0

= Borrowing and issuance of foreign securities

3450.0 2616.3 6687.2 6558.6 8309.7

* Borrowing 3450.0 2616.3 6687.2 6558.6 8309.7

x For financing investments 3450.0 2569.3 751.9 879.7 1040.6

x For financing capital liabilities 0.0 47.0 5935.3 5678.9 7269.1


-81-

Financing Sources


Table (6) Resources

DescriptionActual

(LE. Million)

Expected

Draft 2008/2009

Budget

2009/2010 2007/2008 2006/2007 2005/2006

# Uses 349856.7 382531.8 293708.3 251060.2 235453.9

# Expenditures 319137.2 356438.6 282290.1 222029.2 206984.3

- wages and compensation of employees

86134.6 77179.2 62838.6 52152.8 45759.6

= Wages, cash and in kind allowances

69063.8 63784.5 51171.5 42399.1 37675.6

* Permenant staff 17122.7 15316.3 13938.6 12671.5 11784.4

∆ Basic pay 17022.6 15212.4 13846.4 12571.2 11686.6

∆ Costs of seconded officials and the budget affords their wages

97.4 101.9 91.3 98.7 95.9

∆ Costs of study leaves and training grants

2.7 2.0 0.9 1.5 1.8

* Temporary staff 1045.4 933.7 701.3 526.3 442.1

* Rewards: 29693.9 26933.1 21942.5 18549.1 16036.1

∆ Rewards for employees for extra ordinary efforts

4323.7 3738.1 2957.7 2398.2 2160.2

∆ Countervailing rewards 1978.3 2142.1 1810.5 2056.5 1395.4

∆ Costs of incentives 5348.7 4948.1 3956.3 2452.2 2302.8 ∆ Incentives for employees work in public cadre

2344.6 1894.5 798.5 744.0 514.2

∆ Incentives for employees work in private cadre

1745.4 1475.1 1040.3 894.0 908.8

∆ Additional financial incentives 357.3 325.9 234.1 231.0 212.3

∆ Incentives for scientists 2.5 3.7 49.3 2.0 2.3 ∆ Attracting employment incentives

209.7 171.3 156.6 85.0 62.1

∆ Preference incentive (MA and Ph.D.)

41.9 21.6 16.5 12.0 5.8

∆ Teaching rewards 1236.4 774.5 554.5 511.8 457.7 ∆ Scientific and social leading rewards

400.2 373.1 324.1 298.1 273.7

∆ Academic and applied researches rewards

443.1 316.9 214.7 196.1 180.2

∆ Advisory dissertations rewards 487.0 443.4 402.6 358.5 326.9

∆ Exams rewards 8864.8 8234.3 7293.4 6582.2 5910.6

∆ Exams Correction rewards 250.3 222.3 216.7 206.6 196.6

∆ attending session and committees rewards

105.6 96.1 90.3 73.6 63.5

∆ Emergency rewards for militaries

0.0 0.0 0.0 0.0 0.5

∆ Training rewards 64.4 47.5 57.2 29.8 23.8

∆ Literacy rewards 0.0 0.1 0.0 13.5 0.0 ∆ Research hours rewards in excess of quorum

33.8 29.3 30.3 50.5 34.5

∆ Other rewards 1456.1 1675.2 1738.9 1353.5 1004.1

* Specific allowances 7835.0 6706.8 3965.8 2015.1 1980.5

* Cash benefits 11332.9 12171.8 9050.6 7400.2 6344.0

* Benefits in kind 2033.9 1722.8 1572.7 1236.9 1088.5

∆ Food for employees 869.5 822.4 639.7 622.9 590.5

∆ Clothes for employees 599.0 478.8 280.8 277.6 221.6

∆ Employees medical treatment 462.3 368.6 536.2 290.1 228.3

∆ Employees social and sports services

75.8 31.6 103.5 35.1 35.7

∆ Others 27.3 21.4 12.5 11.1 12.4

= Insurance benefits 8686.2 8000.6 6165.2 5517.9 5094.0

* Government's share in Government Insurance fund

7604.0 7099.8 5463.8 4886.5 4523.4

x Insurance against old age, disability and death

7096.9 6720.5 5108.2 4562.4 4203.6

x Government share in Rewards system contributions

420.3 309.0 287.3 261.7 256.8

x Costs of government contribution in insuring

86.8 70.4 68.3 62.3 63.0

* Other insurance benefits 1082.2 900.7 701.4 631.4 570.5

x insurance against sickness 587.0 427.5 356.1 322.8 284.6

x Insurance against occupational injury

495.3 473.3 345.3 308.6 285.9

= Total salary and general contingencies

8384.5 5394.1 5501.9 4235.7 2988.3

* Total salary 4809.5 5394.1 5294.2 3978.9 2546.6

* Additional requirements for wages

3575.0 0.0 207.7 256.8 441.7

= Excluded and calculated in purchase of non-financial assets

0.0 0.0 0.0 0.0 1.7


-82-

Table (7) Uses

DescriptionActual

Expected

Chapter 1- Wages and Compensation for Employees

2005/2006 - 2009/2010


(LE. Million)

Draft 2008/2009

Budget

2009/2010 2007/2008 2006/2007 2005/2006

Purchase of goods and services 27099.1 24536.0 18470.0 17027.6 14420.8

= Goods 13347.3 12443.1 7271.9 6538.4 5772.5

* Raw materials 4121.5 3693.6 3101.4 2843.6 2576.9

* Operating fuels oil and moving parts 756.3 900.5 640.9 536.9 566.0

* Fuels and oil for cars 82.0 78.1 60.7 54.5 47.0

* Spare parts and fitting 745.3 677.5 483.4 428.2 331.5

* Packaging and packing materials 4.0 2.4 5.9 2.4 2.7

* Stationary and books 230.8 199.4 181.7 174.9 181.6

* Water and lighting 7160.8 6686.2 2620.5 2273.2 1907.6

* Miscellaneous supplies 228.6 192.8 158.0 205.2 143.2

* Purchases for resale 18.0 12.6 19.4 19.5 16.0

= Services 10226.5 9517.2 7624.6 6984.0 6030.1

* Maintenance expenses 3268.1 2755.3 2401.1 2116.2 1769.8

* Publishing, advertising, media and reception 113.4 100.9 357.8 435.9 294.0

* Printing expenditures, periodicals and writing rights 1283.3 1203.3 1284.2 1249.7 1352.0

* Public Transportations 1342.1 1604.7 1134.0 923.8 921.3

* Post and communications services 329.6 245.0 257.7 227.7 174.9

* Rent 286.6 265.3 256.6 226.2 212.8

* Costs of organizing exhibitions and conferences 14.4 18.5 41.6 13.9 17.3

* Costs of cultural relations and foreign cooperation 77.4 74.1 70.5 63.0 55.3

* Research & development and training of employees costs 67.5 63.9 76.4 68.9 71.9

* Various service expenditures 3444.2 3186.2 1744.7 1658.6 1160.6

= Purchase of goods and services and general contingences 3525.3 2575.7 3573.5 3505.2 2618.2

* Total purchase of goods & services 1962.3 2575.7 3573.5 3454.8 2462.4

* Other additional requirements for purchaxe of goods & services 1563.0 0.0 0.0 50.4 155.8


-83-

Table (8) Uses

DescriptionActual

Expected

Chapter 2- Purchase of Goods and Services


2005/2006 - 2009/2010(LE. Million)


2009/2010 2007/2008 2006/2007 2005/2006

Interests 71065.8 52929.7 50527.9 47699.8 36822.1

Foreign interest (to no-residents) 3586.0 4452.5 3736.6 3033.3 2822.7

x Interests of foreign public debt 3496.4 4329.2 3639.1 2950.3 2742.5

x Foreign interests repaid by entities 89.6 123.3 97.5 83.0 80.2

= Domestic intersets (residents) 67262.4 48250.6 46582.9 44501.4 33820.8

* Other than general government units 49626.8 31046.9 30691.1 27975.2 24576.4

x Banking system 48521.7 31021.1 30672.9 27919.0 24507.5

x Other entities 1105.1 25.8 18.2 56.3 68.9

* To general government units 17635.6 17203.7 15891.8 16526.2 9244.4

x Loans interests of financing investments 15912.1 15823.9 15823.9 16167.1 8751.8

x To public treasury (include interests of foreign loans re-lent by public treasury)

210.5 166.3 67.9 59.0 42.4

x Others (include local administration) 1513.0 1213.4 0.0 300.1 450.2

= Total interests and general contingencies

217.4 226.7 208.4 165.1 178.6


-84-

Table (9) Uses

DescriptionActual

Expected

Chapter 3- Interests


2005/2006 - 2009/2010(LE. Million)


2009/2010 2007/2008 2006/2007 2005/2006 - Subsidy, grants and social benefits 73386.9 132812.0 92371.0 58442.3 68994.9

= Subsidy 59775.0 97031.3 84205.3 53958.8 54244.6

* To non-financial public corporations 57363.0 94569.1 82017.4 52476.1 53884.9

x Subsidy for supply commodities 13841.4 23477.0 16444.5 9405.9 9406.7

x To petroleum products 33694.0 58642.7 60248.8 40129.5 41778.1

x To exports promotion 4000.0 4100.0 1960.2 1528.4 1084.9

x To farmers 792.6 707.6 876.1 246.0 61.7

x To electricity 0.0 3000.0 0.0 0.0 0.0

x To passengers transportation 641.0 556.0 565.4 479.0 409.3

x To medical insurance and medicine 412.0 405.0 338.8 337.0 344.7

x To industrial production 400.0 900.0 0.0 100.0 0.0

x To development of Upper Egypt 200.0 200.0 100.0 0.0 0.0

x Others 3382.0 2580.9 1483.6 250.3 799.6

* To financial corporations 2412.0 2462.1 2187.9 1482.6 359.7

x Soft loans interests 662.0 712.1 777.9 707.8 359.7

x Lower income groups housing 1000.0 1000.0 999.7 324.0 0.0

x Others 750.0 750.0 410.3 450.9 0.0

= Grants 3523.0 3584.3 3890.2 2599.4 2174.2

* Grants for foreign government 23.0 114.8 1.6 39.2 10.0

* Grants for general government 3500.0 3469.5 3888.6 2560.2 2164.2

= Social benefits 6663.9 31938.3 4049.9 1611.6 12335.6

* Social security benefits 1217.1 1225.8 993.4 1147.2 1017.6

x Social insurance pension 1120.0 1120.0 899.0 1047.5 944.8

x Child pension 20.0 20.0 20.0 20.0 20.0

x Others 77.1 85.8 74.4 79.7 52.8

* Social assistance 5000.1 30277.7 2600.0 1.1 11000.9

x Contributions to pension funds 5000.0 30277.2 2600.0 0.0 11000.0

x In kind social assistance 0.1 0.5 0.0 1.1 0.9

* Service expenditure for non- employees 407.2 397.0 418.3 436.1 292.6

x Medical treatment cost of residents 28.1 28.1 48.2 19.0 14.9

x Social and sport activity cost of non employees

94.2 5.3 7.3 9.0 7.4

x Health services cost of non employees

15.8 9.5 17.5 11.0 5.9

x Rewards of non-employees 199.6 295.8 303.4 364.1 234.6

x Prizes and medals 69.5 58.4 41.8 33.0 29.8

* Employee's social benefits 39.6 37.7 38.2 27.2 24.4

x Burial expenses 35.4 33.1 30.3 25.1 22.3

x Literacy expenses 0.1 0.1 0.0 0.2 0.3

x Employee's social benefits in kind 0.2 0.4 0.3 0.0 0.0

x Others 3.9 4.2 7.6 1.9 1.9

= Total subsidies and grants and general contingencies

3425.1 258.1 225.6 272.5 191.5

= Excluded subsidy and grants 0.0 0.0 0.0 0.0 49.1


-85-

Table (10) Uses

Description ActualExpected

Chapter 4- Subsidy, Grants and Social Benefits


2005/2006 - 2009/2010(LE. Million)


2009/2010 2007/2008 2006/2007 2005/2006

- Other expenditures 28058.2 25788.7 23891.7 21208.4 19775.0

= Current 2416.4 2911.6 3386.6 2437.1 2559.7

* Taxes and fees 86.5 94.6 95.1 51.9 25.7

* Subscriptions 279.6 254.3 324.1 168.8 127.8

* Miscellaneous 2050.3 2562.8 2967.4 2216.4 2406.1

x Compensations and fines 201.5 196.3 235.4 107.1 216.4

x Other Capital Miscellaneous expenditures

0.7 0.4 5.2 0.0 0.9

x Transferred surplus 634.8 1129.9 1619.3 1092.3 1159.3

x Other current and allocative transfers

1213.2 1236.2 1107.5 1016.9 1029.5

= Total of other expenditures and general contingencies

25641.8 22877.1 20505.1 18771.2 17197.8

* Total of other expenditures 25641.8 22877.1 20505.1 18771.2 17197.8

x Total of other expenditures included in budgets entities

1463.7 810.3 656.3 1034.2 1162.3

x Appropriation of other expenditures for special funds and accounts

29.1 17.8 0.0 0.0 107.0

x Other total expenditures 24149.0 22049.0 19848.8 17737.0 15928.4

* Other expenditures excluded 0.0 0.0 0.0 0.0 17.6


-86-

Table (11) Uses

Description ActualExpected

Chapter 5- Other Expenditures


2005/2006 - 2009/2010(LE. Million)


2009/2010 2007/2008 2006/2007 2005/2006

Purchase of non-financial assets (investments)

33392.6 43192.9 34190.9 25498.4 21211.8

= Fixed Assets 29244.9 40214.6 28186.4 20928.4 17606.9

* Direct investment (includes customs duties)

28654.3 39776.0 27734.4 20523.6 17278.5

x Dwellings 141.3 314.3 155.9 281.6 247.8

x Non-residential buildings 7279.8 6444.1 4118.4 3782.7 3661.4

x Constructions 13667.5 24679.2 15980.0 11371.6 8299.5

x Transportation means 481.9 412.5 509.4 219.9 495.8

x Transport means 140.3 83.9 150.4 70.4 51.9

x Machinery and equipment 6140.4 6814.3 6181.4 4237.2 3969.2

x Tools 96.5 332.1 162.5 100.0 126.3

x Fittings 689.6 680.6 466.7 447.9 408.2

x Animal and water resource (cultivated assets)

17.0 15.0 9.7 12.2 18.5

* Costs of deferred revenues (operating)

590.7 438.6 452.0 404.9 328.4

= Non-produced assets 441.2 335.4 270.0 155.1 188.9

x Purchase of lands 427.1 315.1 226.0 149.1 162.3

x Land reclamation 14.1 20.3 44.0 6.0 15.4

x Other natural assets 0.0 0.0 0.0 0.0 11.2

= Other non- financial assets 3006.5 2642.9 5734.5 4414.8 3415.9

x Interests before operations 27.0 27.6 38.9 44.4 54.6

x Scholarships 686.0 658.8 522.7 396.9 307.4

x Feasibility studies for investment projects

1447.5 1086.1 1321.0 1067.4 999.4

x Advanced payments 546.0 870.4 3850.5 2906.2 2054.5

x Compensation for contractors' prices variations

300.0 0.0 1.4 0.0 0.0

= Total purchase of non-financial assets and general contingencies

700.0 0.0 0.0 0.0 0.0


-87-

2005/2006 - 2009/2010


Table (12) Uses

Expected

Chapter 6- Purchase of Non-Financial Assests (Investments)

(LE. Million)

DescriptionActual


2009/2010 2007/2008 2006/2007 2005/2006

# Acquisition of financial assets 3561.7 5711.4 1886.8 21312.1 3955.6

- Acquisition of domestic and foreign financial assets

3561.7 5711.4 1886.8 21312.1 3955.6

= Acquisition of domestic financial assets

2221.3 5478.1 1756.4 21238.3 3919.2

* Lending 33.0 39.2 68.5 5794.7 346.7

x To economic authorities 0.0 0.0 0.0 0.0 100.0

x To other entities 33.0 39.2 68.5 5794.7 246.7

* Contributions and equities 2188.3 5338.9 1687.9 5653.8 2347.5

x In economic authorities 1866.7 4161.9 1283.8 5270.3 1848.1

x In holding companies 0.0 0.0 194.5 206.4 0.0

x In public enterprises sectorcompanies

0.0 0.0 0.0 0.0 414.0

x In public sector companies 250.0 1020.4 92.8 87.0 0.0

x In other entities 71.6 156.6 116.8 90.1 85.3

* Treasury contribution in the fund of restructuring finance

0.0 100.0 0.0 9789.8 1225.0

x Treasury contribution in thefund of restructuring finance

0.0 100.0 0.0 9789.8 1225.0

= Acquisition of foreign financial assets

140.4 233.3 130.4 16.5 28.4

* Shares and equities 140.4 233.3 130.4 16.5 28.4

x In other entities 140.4 233.3 130.4 16.5 28.4

= Total acquisition of financial assets and general contingencies

1200.0 0.0 0.0 57.4 8.0


(LE. Million)

-88-

Table (13) Uses

DescriptionActual

Expected

Chapter 7- Acquisition of Financial Assets


2005/2006 - 2009/2010


2009/2010 2007/2008 2006/2007 2005/2006

# Loans Repayment 27157.8 20381.9 9531.4 7718.9 24514.1

Domestic and foreign loans repayment

27157.8 20381.9 9531.4 7718.9 24514.1

= Loans repayment and amortization of domestic securities

18126.6 10962.7 5699.5 3666.0 20834.4

* Amortization of securities other than shares

17237.9 9670.0 4631.2 0.0 0.0

x Treasury bonds 17237.9 9670.0 4631.2 0.0 0.0

* Loans Repayment 888.7 1292.6 1012.7 2972.7 19074.2

x To National Investment Bank 201.8 192.8 220.7 1648.7 15423.2

x Foreign loans re-lent by public treasury

554.1 466.7 347.5 274.2 187.3

x To other sources 132.8 633.1 444.5 1049.9 3463.7

*Other accounts payable 0.0 0.0 55.6 693.3 1760.1

x Investment outstanding 0.0 0.0 55.6 693.3 1760.1

= Loans repayment and amortization of foreign securities

9031.2 9419.2 3831.9 4052.8 3679.7

* Amortization of foreign loans 9031.2 9419.2 3831.9 4052.8 3679.7

∆ Foreign public debt installments 8638.7 9010.2 3399.8 3583.7 3252.2

∆ Foreign installments repaid by the entities

392.5 409.0 432.1 469.2 427.5


(LE. Million)

-89-

Table (14) Uses

DescriptionActual

Expected

Chapter 8- Loans Repayment


2005/2006 - 2009/2010

Expected Change

Central Local Service Total 2008/2009

Administration Administration Authorities (1) (2)

# Revenues 209,983 4,037 10,967 224,986 289,733 -64,746

Taxes 144,098 717 728 145,544 167,066 -21,522

Grants 7,245 18 437 7,700 6,608 1,092

Other revenues 58,640 3,301 9,801 71,742 116,059 -44,316

# Expenditures 232,781 46,909 39,447 319,137 356,439 -37,301

Wages and compensation of employees 36,987 38,867 10,281 86,135 77,179 8,955

Purchase of goods and services 15,951 5,579 5,569 27,099 24,536 2,563

Interests 70,701 249 115 71,066 52,930 18,136

Subsidy, grants and social benefits 67,836 255 5,296 73,387 132,812 -59,425

Other expenditures 26,865 88 1,105 28,058 25,789 2,269

Purchase of non-financial assets (investments) 14,442 1,870 17,081 33,393 43,193 -9,800

Cash deficit (surplus) 22,799 42,872 28,480 94,151 66,706 13,101

# Net acquisition of financial assets 855 -203 78 730 4,727 -3,998

Proceeds from lending and sales of financial assets excluding privatization receipts

2,627 203 2 2,832 884 1,948

Acquisition of domestic and foreign financial assets excluding treasury contribution in restructuring fund

3,482 0 80 3,562 5,611 -2,050

Overall deficit 23,653 42,669 28,558 94,881 71,433 9,103

# Net borrowing 23,653 42,669 28,558 94,880 71,333 23,547

Borrowing and issuance of securities other than shares 50,203 42,901 28,934 122,038 91,715 30,323

Domestic and foreign loans repayment 26,550 232 376 27,158 20,382 6,776

# Net privatization receipts 0 0 0 0 100 -100

* Privatization receipts 0 0 0 0 200 -200

∆ Treasury contribution in restructuring fund 0 0 0 0 100 -100

∆ GDP 1,181,000 1,181,000 1,181,000 1,181,000 1,040,000

∆ Revenues as a ratio of GDP 17.8% 0.3% 0.9% 19.1% 27.9%

∆ Expenditure as a ratio of GDP 19.7% 4.0% 3.3% 27.0% 34.3%

∆ Cash deficit (surplus) as a ratio of GDP 1.9% 3.6% 2.4% 8.0% 6.4%

∆ Overall deficit as a percentage of GDP 2.0% 3.6% 2.4% 8.0% 6.9%


Supplement (2) : Administrative Classification of General Budget-93-

(1-2)Description

Draft Budget 2009/2010

(LE. Million)

Table (1) Overall Picture2008/2009 - 2009/2010

Expected Change

Central Local Service Total 2008/2009Administration Administration Authorities (1) (2)

Taxes ـ 1 144,098 717 728 145,544 167,066 -21,522

= Taxes on income, profits and capital gains 58,749 0 0 58,749 80,630 -21,881

* Taxes on income from employment 9,767 0 0 9,767 10,852 -1,085

x Taxes on domestic salaries 7,951 0 0 7,951 8,835 -883

x Stamp duty on salaries 1,815 0 0 1,815 2,017 -202

* Income tax on activity other than employment 4,705 0 0 4,705 5,328 -623

x Taxes on non-commercial professions 309 0 0 309 343 -34

x Taxes on industrial and commercial activity 4,396 0 0 4,396 4,885 -489

x Taxes on interest from bonds (transferred capitals) 0 0 0 0 100 -100

* Taxes on capital gains 41 0 0 41 45 -5

x Real estate tax 41 0 0 41 45 -5

* Tax on profits of money corporates 44,237 0 0 44,237 51,405 -7,168

x From EGPC and foreign partner 18,453 0 0 18,453 22,369 -3,916

x From Suez Canal 9,029 0 0 9,029 10,454 -1,425

x from CBE 152 0 0 152 135 17

x Other corporates 16,513 0 0 16,513 18,348 -1,835

x Development fees on net profits stipulated in law No. 157/1981 article No. 111 90 0 0 90 100 -10

* Other miscellaneous taxes 0 0 0 0 13,000 -13,000

=Taxes on property 7,529 576 0 8,106 4,120 3,986

* Recurrent taxes on property 282 352 0 634 565 69

x Land tax 131 165 0 296 263 32

x Building taxes 151 188 0 339 302 37



Description(1-2)

-94-Supplement (2) : Administrative Classification of General Budget

(LE. million)

Table (2-A) Resources : (Chapter One: Taxes)

2008/2009 - 2009/2010

Expected Change


* Taxes on financial and capital transactions 5,402 0 0 5,402 1,654 3,748

x Property transferring fees 669 0 0 669 601 68

x Taxes on bills and bonds' dividends 4,733 0 0 4,733 1,053 3,680

* Taxes and fees on cars 1,846 224 0 2,070 1,901 169

x Development fees on cars and driving license 829 0 0 829 758 71x Development fees on new cars produced locally, and all imported cars 994 0 0 994 908 85

x Local taxes and fees on cars 0 224 0 224 214 10

x Taxes on private cars (social solidarity) 24 0 0 24 21 2

= Taxes on goods and services 60,506 141 728 61,376 64,083 -2,707

* Sales tax 25,247 0 0 25,247 28,208 -2,961

x Local commodities 9,689 0 0 9,689 10,766 -1,077

x Imported goods 15,557 0 0 15,557 17,442 -1,884

* Sales tax - services 8,877 0 0 8,877 8,323 554

x Hotel and restaurant services for tourists 2,276 0 0 2,276 2,134 142

x Operating services for others 2,646 0 0 2,646 2,481 165

x International and local communication services 3,624 0 0 3,624 3,398 226

x Other services 331 0 0 331 311 21

* Excises on domestic items (Table 1) 15,308 0 0 15,308 15,280 28

x Sugar 122 0 0 122 136 -14

x Beer 178 0 0 178 198 -20

x Tobacco and cigarettes 7,015 0 0 7,015 6,682 333

x Petroleum products 7,587 0 0 7,587 7,814 -227

x Alcohol 104 0 0 104 116 -12

x Medicine 271 0 0 271 301 -30

x Edible vegetable oils 16 0 0 16 18 -2

x Fats and oils 2 0 0 2 2 0

x Cement 12 0 0 12 13 -1

* Excises on imported items in (Table 1) 678 0 0 678 537 141

x Tea 44 0 0 44 49 -5

x Sugar 3 0 0 3 3 0

x Tobacco and cigarettes 626 0 0 626 479 147

x Alcohol 5 0 0 5 6 -1

* Taxes on specific services 951 45 0 996 902 94

x Taxes on social solidarity tickets for traveling aboard 221 0 0 221 197 24x Development fees on traveling tickets issued in Egypt in local currency 442 0 0 442 374 68

x Entertainment tax 68 45 0 112 59 54

x Royalties on gambling 0 0 0 0 63 -63

x Fines and compensation of income tax law 100 0 0 100 69 31

x For tax arrears 120 0 0 120 140 -20

(LE. million)

(1-2)Description


-95-

Expected Change


* Stamp tax (exclude stamp tax on salaries) 4,732 0 0 4,732 5,258 -526

x Stamp on stamped figures and tax stamps 120 0 0 120 133 -13

x Stamp on insurance 320 0 0 320 355 -36

x Stamp on bettering and lottery 6 0 0 6 7 -1

x Stamp on stock exchange operations 32 0 0 32 36 -4

x Stamp on subscription in water, electricity, gas, telephone 229 0 0 229 255 -26

x Stamp on gas, electricity and butane consumpion 1,114 0 0 1,114 1,237 -124

x Stamp on advertising 481 0 0 481 535 -53

x Stamp on Ministry of Justice documents 0 0 0 0 0 0

x Stamp on permits and administrative licences 13 0 0 13 15 -2

x Stamp on ration cards 1 0 0 1 1 0

x Stamp on the certificates and declarations 55 0 0 55 61 -6

x Stamp on contracts and its peers 123 0 0 123 136 -14

x Stamp on trade navigation documents 0 0 0 0 0 0

x Stamp on commercial documents 0 0 0 0 0 0

x Stamp on receipts, clearances and invoices 108 0 0 108 120 -12

x Stamp on banking edits and its peers 1,462 0 0 1,462 1,624 -162

x Stamp on transportation services 19 0 0 19 22 -2x Miscellaneous stamp 649 0 0 649 721 -72

* Development fees (except revenues exceeding L.E 18000 taxes on cars) 1,495 0 0 1,495 1,302 193

x Development fees on passports 150 0 0 150 122 29

x Development fees on foreigners residents and ad hoc 2 0 0 2 1 1

x Development fees on requesting Egyptian nationality 0 0 0 0 0 0

x Development fees on leaving the country 804 0 0 804 694 110x Development fees on weapon licenses 1 0 0 1 1 0x Development fees on documents and other correspondence that subject to specific stamp tax

200 0 0 200 160 40

x Development fees on obtaining documents copy from real estate authority 1 0 0 1 1 0

x Development fees on purchasing from free zones 50 0 0 50 45 5

x Development fees on parties and the entertaining services that provided in hotels and touristic public shops

27 0 0 27 26 1

x development fees on beach villas, cabins, stalls in summer and winter resorts whatever its type

2 0 0 2 2 0

x development fees on quarries 253 0 0 253 247 6

x Development fees on other revenues 5 0 0 5 3 2


(1-2)

-96-(LE. million)

Description

Expected Change



* Taxes on use of goods and on permission to use goods or perform activities 3,220 96 728 4,044 4,274 -230

x Royalties on Suez Canal 1,197 0 0 1,197 1,519 -322

x Royalties for using the Nile pass 0 0 1 1 1 0

x Fees on work permits for foreigners 25 0 0 25 24 1

x Local fees 0 96 0 96 117 -20

x Administrative expenses for import transactions 410 0 7 417 470 -53

x Crossing fees (Somid) 456 0 0 456 456 0

x Fees on ports and lighthouses 73 0 715 788 763 25

x Fees on consular procedures 890 0 0 890 782 108

x Cotton ginning fees 0 0 6 6 5 1

x Fees on passports 25 0 0 25 11 14

x Fee on work permits 137 0 0 137 122 15

x Fees on personal identification 7 0 0 7 5 2

= Taxes on international trade 14,018 0 0 14,018 14,925 -907

* Taxes on imports 13,828 0 0 13,828 14,556 -728

x Ad valorem customs taxes 13,388 0 0 13,388 14,134 -746

x Customs taxes on imported cigarettes and tobacco 440 0 0 440 422 18

Taxes on other international trade 190 0 0 190 369 -179

x Taxes on exports 0 0 0 0 190 -190

x Customs allocated for maritime transportation subsidy 28 0 0 28 28 0

x Fines revenues 126 0 0 126 118 9

x Seizures revenues 36 0 0 36 34 2

= Other Taxes 3,295 0 0 3,295 3,308 -13

* Taxes on businesses 3,295 0 0 3,295 3,308 -13

x Tax on transferred capital revenues from CBE 3,193 0 0 3,193 3,206 -13

x Tax on transferred capital revenues from other entities 102 0 0 102 102 0

Description(1-2)


(LE. million)

-97-

Expected Change



Grants ـ 2 7,245 18 437 7,700 6,608 1,092

= Grants from foreign governments 7,160 3 179 7,342 6,391 951

* Current 6,390 0 0 6,390 6,168 222

x Other 6,390 0 0 6,390 6,168 222

* Capital 770 3 179 952 223 729

x For financing investments 770 3 179 952 223 729

= Grants from international organization 11 15 95 121 25 96

* Current 6 0 0 6 0 6

x Other 6 0 0 6 0 6

* Capital 5 15 95 115 25 90

∆ For financing investments 5 15 95 115 25 90

= Grants from government entities 74 0 164 237 192 45

* Current 28 0 114 142 112 30

x Other 28 0 114 142 112 30

* Capital 46 0 50 95 80 15

∆ For financing investments 46 0 50 95 80 15

(LE. million)

Description


(1-2)

Supplement (2) : Administrative Classification of General Budget

-98-

Table (2-B) Resources : (Chapter II Grants)

2008/2009 - 2009/2010

Expected Change


Other Revenues ـ 3 58,640 3,301 9,801 71,743 116,059 -44,316 = Property income 41,352 145 125 41,622 55,267 -13,644* Received Interests 6,083 0 18 6,102 7,521 -1,419x On Bonds 5 0 0 5 15 -10x On Lending 4,542 0 1 4,543 4,411 132x On re-lending (include interests of foreign loans re-lent by the treasury) 1,360 0 0 1,360 2,849 -1,489

x Credit interests 174 0 16 191 215 -24x Other 2 0 1 3 31 -28* Dividends 31,429 0 9 31,437 44,087 -12,650x Private sector companies 17 0 8 25 17 8x Economic authorities 2,938 0 0 2,938 2,179 759x CBE 228 0 0 228 130 98x Public sector companies 507 0 0 507 433 74x Public enterprise sector companies 5,102 0 0 5,102 3,500 1,602x EGPC 10,802 0 0 10,802 22,143 -11,341x SCA 11,830 0 0 11,830 15,680 -3,851x Profits of securities 5 0 1 6 5 1* Rent 1,490 145 98 1,733 2,971 -1,238x Royalties on petroleum 1,477 0 0 1,477 2,773 -1,296x Rent of governmnetal land 12 5 97 113 81 32x Revenue from mines 1 23 1 25 20 5x Rent of public utility administrated by localities 0 117 0 117 96 21

∆ Tourist regions revenues 1 0 0 1 0 0* Other property income 2,350 0 0 2,350 687 1,663x Third generation mobile 2,350 0 0 2,350 0 2,350x For (cement-iron) license 0 0 0 0 687 -687 = Sales of goods and services 4,633 2,371 6,198 13,202 14,288 -1,085* Service revenues 3,433 2,355 6,198 11,986 12,822 -835x Judicial fees and fines (justice service excluding property transfering fees) 1,090 0 0 1,090 877 213

x Fees for registering, observation and control 99 0 10 109 107 2x Customs services 202 0 0 202 197 5x Agricultural services 51 2 37 90 87 3

x Educational services 8 78 86 172 155 17x Health services 16 33 2 52 44 8x Cultural services 12 0 11 23 22 1

x Housing and construction services 0 13 8 21 19 2x Social services 421 1 0 422 232 189x Supply services 0 0 0 0 0 0x Workpower services 0 14 0 14 10 4x Roads and transportation services 4 18 0 22 23 -1x Recreation and sports services 0 2 18 20 15 5

-99-

Description


(LE. million)


(1-2)

Table (2-C) Resources (Chapter III other revenues)

2008/2009 - 2009/2010

Expected Change


x Veterinian services 0 2 1 2 3 -1

x Organisation and management services 0 0 0 0 0 0

x Real etstate taxes services 15 0 0 15 19 -4

x Sales of goods 103 0 423 526 388 138

x Revenues from productive projects 0 226 18 244 102 142

x Rent of public utilities 64 0 23 87 78 9

x Rental of government buildings 23 1 1 25 27 -2

x Fee for management and supervision over companies 28 0 0 28 29 0

x Profits from commemorative coins issuance 2 0 0 2 2 0

x Current revenues from special accounts and funds 963 1,965 5,418 8,347 9,686 -1,339

x Collected from provision of services 189 0 44 234 217 17

x Collected from provision of some entities services to other entities 4 0 0 4 6 -2

x Revenues of training programs 17 0 2 19 17 2

x Collection commission 4 0 0 4 4 0

x Others 116 0 96 212 456 -244

* Sale of goods revenues 1,200 16 0 1,216 1,466 -250

x Sale of inventories receipts 0 16 0 16 51 -35

x Receipts from variation prices of natural gas sale 1,200 0 0 1,200 1,415 -215

(LE. million)


(1-2)Description

-100-

Expected Change



= Compensation and fines 238 0 72 310 288 23

* Penalties fines and seizures 238 0 72 310 288 23

x Revenues from seized cash 15 0 0 15 10 5

x Proceeds of the collected-back money 12 0 0 12 13 -1

x Compensations received from import violations 40 0 53 93 93 0

x Compensation of illegal practices in international trade 25 0 0 25 25 0

x Receipt of penalties and fines fund 0 0 0 0 1 -1

x Fines receipt 145 0 0 145 132 13

x Other 1 0 19 21 14 7

= Voluntary transfers 7 0 65 72 290 -218

* Current 7 0 36 43 74 -31

x Surplus of general committee for charity 7 0 0 7 7 0

x Various activities revenues 0 0 36 36 67 -31

* Capital 0 0 28 28 216 -188

x Domestic aid and donation for financing investments 0 0 27 27 216 -189

x Foreign aid and donation for financing investments 0 0 0 0 0 0

x Other 0 0 1 1 0 1

= Miscellaneous revenues 12,410 785 3,342 16,536 45,927 -29,391

* Current 7,113 233 956 8,301 32,199 -23,898

x Uncollected credits passed legal period 64 0 0 64 56 8

x Previous years revenues 158 1 0 159 1,632 -1,473

x For employees' subscription in buses cost 4 0 0 4 4 0

x Market revenues 0 46 0 46 31 15

x Revenue from building fines 0 12 0 12 2 10

x Other various revenues 6,887 173 955 8,015 30,474 -22,459

* Capital 5,297 552 2,386 8,235 13,728 -5,493

x Decrease in debits of advance payments for financing investments 0 0 0 0 687 -687

x Capital resources and sources of financing investments 182 552 2,287 3,020 3,105 -85

x Proceeds from sale of non-produced assets (lands) 80 0 36 116 5,000 -4,884

x Proceeds from sale of produced assets (cars, dwellings and other) 1 0 63 64 69 -5

x Other capital revenues 5,034 0 0 5,034 4,867 167

-101-

(1-2)

(LE. million)

Description


Expected Change



Lending and sales of financial assets proceeds ـ 2,627 203 2 2,832 1,084 1,748

= Lending and sales of domestic financial assets proceeds 2,627 203 2 2,832 1,084 1,748

* Collected lending installments 2,627 203 2 2,832 884 1,948

x From economic authorities 198 0 0 198 5 193

x Collected from budget entities - installments of foreign loans re-lent by treasury) 558 0 0 558 650 -92

x From other entities 1,871 203 2 2,076 229 1,846

* Privatization 0 0 0 0 200 -200

x Privatization Receipts 0 0 0 0 200 -200

Description


-102-


(1-2)

(LE. million)

Table (2-D) Resources : (Acquisition proceeds)2008/2009 - 2009/2010

Expected Change



Borrowing and issuance of securities other ـthan shares 50,203 42,901 28,934 122,038 91,715 30,323

= Borrowing and issuance of domestic securities 49,620 42,901 26,067 118,588 89,099 29,490

* Issuance of securities other than shares 49,620 42,901 26,051 118,572 88,969 29,603

x T. Bonds 32,000 25,000 16,000 73,000 54,000 19,000

x T. Bills 17,620 17,901 10,051 45,572 34,969 10,603

* Borrowing 0 0 16 16 130 -114

x Borrowing to finance investments 0 0 16 16 30 -15

x Borrowing from other sources 0 0 0 0 99 -99

= Borrowing and issuance of foreign securities 583 0 2,867 3,450 2,616 834

* Borrowing 583 0 2,867 3,450 2,616 834

x For financing investments 583 0 2,867 3,450 2,569 881

x For financing capital liabilities 0 0 0 0 47 -47

(1-2)Description


(LE. million)


-103-

Table (2-E) Resources : (Financing Sources)

2008/2009 - 2009/2010

Expected Change



Wages and compensation of employees ـ 36,987 38,867 10,281 86,135 77,179 8,955

= Wages and cash and in kind allowances 27,260 32,617 9,187 69,064 63,785 5,279

* Permanent staff 4,547 10,943 1,633 17,123 15,316 1,806

x Basic Pay 4,448 10,943 1,632 17,023 15,212 1,810

x Costs of seconded officials and the budget affords their wages 97 0 0 97 102 -5

x Costs of study leaves 2 0 1 3 2 1

* Temporary staff 554 77 414 1,045 934 112

x Comprehensive remuneration (national experts) 32 1 9 41 39 2

x Comprehensive remuneration (foreign experts) 12 0 13 25 24 1

x Casual employments wages 491 77 290 858 735 122

x New graduated doctors and physical therapy specialists remuneration 3 0 29 32 30 2

x Remuneration for full-time professors 3 0 30 33 57 -24

x Remuneration for part-time professors 13 0 43 56 48 8

* Rewards 12,418 11,673 5,604 29,694 26,933 2,761

x Rewards for employees extra ordinary efforts 3,636 131 557 4,324 3,738 586

x Countervailing rewards 1,804 6 168 1,978 2,142 -164

x Employees incentives costs 884 4,465 0 5,349 4,948 401

x General cadre employees incentives 1,657 101 586 2,345 1,895 450



(LE. million)


(1-2)Description

Table (3-A) Uses: (Chapter I: Wages and Compensation of employees)

2008/2009 - 2009/2010

Expected Change



x Special cadres employees' incentives 1,415 0 331 1,745 1,475 270

x Additional financial incentives 49 0 308 357 326 31

x Scientists incentives 1 0 1 2 4 -1

x Attracting employment incentives 45 157 8 210 171 38

x Preference incentive (MA and PHD) 8 23 11 42 22 20

x Teaching rewards 139 852 246 1,236 775 462

x Scientific and social leading rewards 75 0 326 400 373 27

x Academic and applied researches rewards 87 0 357 443 317 126

x Advisory dissertations rewards 87 0 400 487 443 44

x Exams rewards 1,893 5,825 1,147 8,865 8,234 630

x Exams correction rewards 47 95 108 250 222 28

x Attending sessions and committees rewards 39 6 61 106 96 9

x Emergency rewards for militaries 0 0 0 0 0 0

x Training rewards 55 7 3 64 48 17

x Literacy rewards 0 0 0 0 0 0

x Overtime rewards 16 0 18 34 29 5

x Other rewards 482 4 970 1,456 1,675 -219

(LE. million)

Description


-105-

(1-2)

Expected Change



* Specific allowances 5061 2564 210 7834.997 6706.826519 1128.170481

x Representation allowances for senior posts 3 1 1 5 4 1

x Representation allowances for employees abroad 3 0 20 23 19 4

x Work nature allowances for doctors 4 11 5 20 19 1

x Allowance for pharmacist, midwifes, nurses, health visitors and inspectors 1 10 5 16 16 0

x Infection and rays protection allowance 14 121 30 165 150 16

x Assignment allowance for engineers 3 5 3 11 9 2

x Assignment allowance for lawyers 0 0 1 1 1 0

x Assignment allowance for agronomists 4 49 9 62 50 12

x Assignment allowance for veterinarians 1 4 1 6 5 1

x Assignment allowance for commercial professionals 0 4 0 5 4 1

x Military allowances 68 0 0 68 65 3

x Work nature allowance 91 29 24 144 137 8

x Deans, deputies and chefs of department allowances 0 0 1 1 1 0

x Cashier and collection deficit allowance 3 1 0 4 3 1

x Risk allowance 18 107 26 151 127 24

x Driving allowance 1 0 0 1 1 0

x Other professional and technical allowance 1 1 1 3 3 0

(1-2)Description


-106-(LE. million)

Expected Change



x Resident allowance at remote areas 64 160 16 240 227 13

x Sudan allowance 26 0 1 27 25 2

x Non-resident allowance 2 0 0 2 2 0 x Residential allowance at home and abroad 11 0 14 25 24 1

x Reception and guesting allowance 1 0 0 1 0 0

x Corresponding allowance 1 0 0 1 1 0

x Food allowance 2 14 5 21 25 -4

x Clothes allowance 3 0 0 3 3 0

x Fixed cash transport allowance (for not using governmental cars) 1 0 0 1 1 0

x Univerisity allowance 5 0 20 25 23 2

x Allowance for culture relationship and foreign cooperation 78 0 0 78 61 18

x Allowance for fine artists 0 0 0 1 0 0

x Teacher allowance (Teaching) 373 2,044 0 2,417 2,461 -45

x Approval allowance (Teachers) 3,100 0 0 3,100 2,063 1,037

x Other allowances 1,178 3 24 1,205 1,176 29

* Cash benefits 2,970 7,249 1,114 11,333 12,172 -839

x Social allowance 70 133 19 222 199 23

x Additional social allowance 64 139 22 225 201 23

x Workwomen compensation costs amounting 25% of the monthly salary 0 1 0 2 15 -13

x Special allowance 2,647 6,617 1,008 10,272 11,098 -827

x Monthly allowance 189 359 58 605 649 -44

x Other cash benefits 0 0 8 8 10 -2

* Benefits in kind 1,710 112 212 2,034 1,723 311

x Employees' food costs 706 107 57 870 822 47

x Employees' clothing costs 583 4 12 599 479 120

x Employees' medical treatment costs 322 0 140 462 369 94

x Employees' social and sport services costs 72 1 3 76 32 44

x Others 27 0 0 27 21 6

(LE. million)

(1-2)Description

-107-


Expected Change



Insurance benefits 2,163 5,682 841 8,686 8,001 686

* Government share in government social insurance fund 1,815 5,082 707 7,604 7,100 504

x Insurance against old age, disability and death 1,713 4,725 659 7,097 6,720 376

x Government share in rewards system contributions 93 285 42 420 309 111

x Contributions of previous period 0 0 0 0 0 0

x Government contributions costs to insure employees in maternity leaves

9 72 6 87 70 16

* Other insurance benefits 348 599 135 1,082 901 181

x Insurance against sickness 221 286 80 587 427 159

x Insurance against occupational injury 127 313 55 495 473 22

Total salary appropriation and general contingencies 7,564 568 252 8,385 5,394 2,990

* Total salary 3,989 568 252 4,810 5,394 -585

x Total salaries included in entities' budgets 3,955 43 2 4,001 4,020 -19

x Total salary appropriations for special accounts and funds 34 525 250 809 1,374 -566

* Additional requirements of salaries 3,575 0 0 3,575 0 3,575

x General contingencies of salaries 975 0 0 975 0 975

x Other additional requirements for salaries 2,600 0 0 2,600 0 2,600

Description


(1-2)

-108-(LE. million)

Expected Change



purchase of goods and services ـ 15,951 5,579 5,569 27,099 24,536 2,563

= Goods 7,639 3,203 2,505 13,347 12,443 904

* Raw material 1,542 856 1,724 4,121 3,694 428

x Medicine 802 322 722 1,847 1,813 34

x Food stuff 372 432 508 1,313 1,174 138

x Other raw material 367 101 494 962 706 256

* Operating fuels, oils, and moving parts 517 180 60 756 901 -144

x Petroleum products and natural gas 200 44 37 280 288 -8

x Lubricating and greasing materials 14 9 5 28 25 2

x Electricity 303 127 18 448 587 -139

* Fuels and oils for cars 43 17 22 82 78 4

x Petroleum products and natural gas 37 13 18 68 67 1

x Lubricating and greasing materials 6 3 4 14 12 2

* Spare parts and fitting 441 46 259 745 677 68

x Spare parts and materials for maintenance 290 31 120 441 401 39

x Various spare parts and fittings 151 15 139 304 276 28* Packaging and packing materials 1 1 2 4 2 2

x Consumed materials 1 1 2 4 2 2* Stationary and books 95 79 57 231 199 31

x Stationaries 50 22 26 97 70 27x Books, magazines and documents for libraries 14 1 16 31 26 5

x Notebooks and books 4 5 5 14 17 -3x Other printings 28 51 11 89 87 2

* Water and lighting 4,822 2,002 337 7,161 6,686 475x Water 123 98 57 277 236 41x Lighting 4,700 1,904 280 6,884 6,450 433

(1-2)

(LE. million)

Description



Table (3-B) Uses: (Chapter II: Purchase of Goods and Services)

2008/2009 - 2009/2010

Expected Change



* Various supplies 178 8 43 229 193 36x Educational equipment, visual and hearing supplies 83 0 9 92 97 -5

x Garden organizing tools requirements 1 0 1 2 1 1x Copier machines requirements 3 0 2 5 2 2x Musical instrument requirements 1 0 0 1 0 1x Sporting apparatus requirements 5 0 0 6 4 1x Other various supplies 86 7 31 124 88 36* Purchases for re-sale 0 15 3 18 13 5x Domestic 0 15 1 16 10 5x Foreign 0 0 3 3 3 0 = Services 6,471 1,012 2,743 10,227 9,517 709* Maintance expenses 1,214 193 1,861 3,268 2,755 513x Maintenance and purification of irrigation and drainage systems expenses 199 0 171 370 361 9

x Maintenance and restoration expenses for building constructions and minor works for buildings

376 97 517 991 794 197

x Utilities and nets maintenance 122 5 7 135 146 -11

x Roads, ways and bridges maintenance 75 11 902 988 822 166

x Equipment and machines maintenance 228 35 206 468 414 54

x Transportation maintenance 178 33 26 237 172 65

x Furniture, machines and offices maintenance 8 3 19 29 14 15

x Computers and electronic sets maintenance 18 2 5 26 18 7

x Others 10 7 8 24 14 10* Publishing, advertising, media and reception 63 4 47 113 101 12

x Publishing, and advertising expenses 32 3 14 49 34 15x Advertising expenses 6 0 17 23 22 1x Parties and receptions expenses 8 0 7 16 16 0

x International visits expenses and costs of participation in international conferences 13 0 4 17 21 -4

x Costs of participation in local conferences 0 0 0 0 0 0

x Public affairs and relationships expenses 3 1 4 8 7 1* Printing expenses, periodicals and writing rights 1,195 15 73 1,283 1,203 80

x Printing expenses 1,177 14 52 1,243 1,168 75x Subscription expenses in magazines and newspapers 9 1 7 17 19 -2

x Expenses of buying writers rights 5 0 4 9 5 4x Expenses to promote writing and writers 0 0 1 1 0 0x Expenses to issue books, magazines and cultural publications 5 0 8 13 11 2

-110-(LE. million)

Description


(1-2)

Expected ChangeCentral Local Service Total 2008/2009


* Public transportation and transport 471 728 143 1,342 1,605 -263

x Supplies transportation via railways 5 0 0 6 5 1

x Public transportations for railway's authority staff and others 33 6 13 52 52 0

x Internal public transportations by other means 89 63 48 199 186 13

x Abroad transportations by other means 75 0 17 92 85 6

x Transportations and travel allowance for employees seconded abroad

13 0 0 13 11 2

x Internal travel allowance 81 13 9 102 109 -7

x Abroad travel allowance 35 0 14 48 43 5

x Cash allowance for employees in remote areas 136 647 43 825 1,109 -284

x Other 5 0 0 5 5 0* Post and communication services 263 33 34 330 245 85

x Post 145 10 4 159 141 18x Telephone 104 22 25 151 88 63x Telegram 0 0 0 1 1 0x Ticker subscription 1 0 0 2 2 0x Telex and fax 2 0 0 3 2 1x Internet 10 0 4 14 11 3

* Rent 201 25 60 287 265 21

x Rent of lands, buildings, stores and garages, etc. 154 17 38 208 194 14

x Rent of statistical and calculating machines 0 0 14 14 13 1

x Rent of machines and equipment 12 0 1 13 11 2x Rent of tents and chairs 13 1 2 16 14 2x Rent of transportation means 22 7 6 35 32 3

* Costs of organizing exhibitions and conferences 7 0 7 14 18 -4

x At home 7 0 6 12 15 -3x Abroad 1 0 1 2 3 -1

* Costs of cultural relations and foreign cooperation 52 0 25 77 74 3

x Costs of exchanging missions and delegations with foreign governments

30 0 13 43 40 2

x Costs of offices, cultural centers and mission offices 21 0 12 33 32 1

x Others 2 0 0 2 2 0

(LE. million)

(1-2)


Description

-111-

Expected Change



* Research and development and training of employees expenses 43 2 22 68 64 4

x Researches and experiments services 4 0 18 21 35 -14

x Costs of training programs 40 2 4 46 29 17

* Various service expenses 2,961 13 470 3,444 3,186 258

x Insurance and commission expenses 25 1 12 38 28 11

x Feasts and seasons expenses 11 0 4 15 11 4

x Judicial sentences execution expenses 2,025 5 4 2,034 1,814 220

x Registration fee at lawyers syndicat 0 0 0 1 1 0

x Committee of arbitration expenses 0 0 0 1 0 0

x Operating expenses of sub-contracts and others 50 0 9 59 51 8

x Specified and confidential expenses 22 0 2 24 23 0

x Other various expenses 828 6 439 1,274 1,258 16

Purchase of total goods and services and general contingencies 1,840 1,364 321 3,525 2,576 950

* Purchase of total goods and services 277 1,364 321 1,962 2,576 -613

x Purchase of good and services included in budget entities 244 203 0 446 361 85

x Purchase of goods and services appropriation for special account and funds

34 1,161 321 1,516 2,214 -699

* additional requirements for purchase of goods and services 1,563 0 0 1,563 0 1,563

x General contingencies for purchase of goods & services 1,063 0 0 1,063 0 1,063

x Other additional requirements for purchase of goods and services 500 0 0 500 0 500


-112-(LE. million)

Description(1-2)

Expected ChangeCentral Local Service Total 2008/2009


Interests ـ 70,701 249 115 71,066 52,930 18,136

= Foreign interests 3,547 10 29 3,586 4,452 867-

* Foreign interests (to non-residents) 3,547 10 29 3,586 4,452 867-

x Foreign public debt interests 3,496 0 0 3,496 4,329 833-

x Foreign interests paied by entities 51 10 29 90 123 34-

= Domestic interests (to residents) 67,154 22 87 67,262 48,251 19,012

* Other than general government entities 49,627 0 0 49,627 31,047 18,580

x CBE bonds interests 9,978 0 0 9,978 9,780 197

x GASC bonds interests 36 0 0 36 36 0

x Bonds interests of banks capitals increase

320 0 0 320 320 0

x Dollar bonds interests of foreign exchange deficit

435 0 0 435 710 275-

x Interests on public treasury bills 25,862 0 0 25,862 11,000 14,862

x Interests on public treasury bonds 10,025 0 0 10,025 7,868 2,157

x Interests on temporary covering of debit balance

950 0 0 950 300 650

x Interests on domestic bonds 499 0 0 499 430 69

x Interests on actuarial deficit bonds of insurance funds

110 0 0 110 110 0

x Interests on 5% of government bonds

59 0 0 59 59 0

x Interests on bonds expected to be issued for benefit of insurance fund

88 0 0 88 8 80

x Interests on supporting funds balances

160 0 0 160 400 240-

x To other entities 1,105 0 0 1,105 26 1,079

* To general government units 17,527 22 87 17,636 17,204 432

x Interests on investments funding loans 15,912 0 0 15,912 15,824 88

x To public treasury (includes foreign loans interests, relent by

115 10 86 211 166 44

x To other entities (including localities)

1,500 12 1 1,513 1,213 300

= Total interests and general contingencies

0 217 0 217 227 9-

* Total interests 0 217 0 217 227 9-

x Total interests included in entities' budgets

0 0 0 0 0 0

x Interests appropariations for special accounts and funds

0 217 0 217 227 9-

(1-2)


(LE. million)


Description

Table (3-C) Uses: (Chapter III: Interests)2008/2009 - 2009/2010

Expected Change



Subsidy, grants and social benefits ـ 67,836 255 5,296 73,387 132,812 -59,425

= Subsidy 55,760 0 4,015 59,775 97,031 -37,256

* To non-financial public corporations 53,348 0 4,015 57,363 94,569 -37,206

x To G A S C 13,841 0 0 13,841 23,477 -9,636

x To petroleum products 33,694 0 0 33,694 58,643 -24,949

x To exports promotion 0 0 4,000 4,000 4,100 -100

x To farmers 780 0 13 793 708 85

x To electricity 0 0 0 0 3,000 -3,000

x To passengers transportation 641 0 0 641 556 85

x To medical insurance and medicine 412 0 0 412 405 7

x To industrial production 400 0 0 400 900 -500

x To development of Upper Egypt 200 0 0 200 200 0

x To other 3,380 0 2 3,382 2,581 801

* To financial corporations 2,412 0 0 2,412 2,462 -50

x Soft loans interests 662 0 0 662 712 -50

x Lower income groups housing 1,000 0 0 1,000 1,000 0

x Others 750 0 0 750 750 0

= Grants 2,382 185 957 3,523 3,584 -61

* Grants to foreign governments 23 0 0 23 115 -92

x Current 23 0 0 23 115 -92

* Grants to other general government units 2,359 185 957 3,500 3,470 30

x Current 2,359 185 957 3,500 3,470 30

= Social benefits 6,399 35 230 6,664 31,938 -25,274

* Social security benefits 1,217 0 0 1,217 1,226 -9

x Social insurance pension 1,120 0 0 1,120 1,120 0

x Child pension 20 0 0 20 20 0

x Other 77 0 0 77 86 -9

* Social assistances 5,000 0 0 5,000 30,278 -25,278

x Contributions to pensions funds 5,000 0 0 5,000 30,277 -25,277

x In kind social assistance 0 0 0 0 1 0

(LE. million)

(1-2)Description



Table (3-D) Uses: (Chapter IV: Subsidy, Grants and Social Benefits)

2008/2009 - 2009/2010

Expected Change



* Service expenses for non-employees 173 10 224 407 397 10

x Medical treatment expenses of residents 28 0 0 28 28 0

x Social and sport activity expenses of non-employees 2 5 87 94 5 89

x Health services expenses of non-employees 6 0 9 16 9 6

x Rewards of non-employees 114 5 80 200 296 -96

x Prizes and medals 22 0 47 69 58 11

* Social benefits for employees 9 25 6 40 38 2

x Burial expenses 9 21 5 35 33 2

x Other 0 4 0 4 4 0

Total subsidy & grants and general contingencies 3,296 35 95 3,425 258 3,167

* Total subsidy and grants 124 35 95 253 253 0

x Total subsidy and grants included in entities' budgets 123 2 0 125 112 13

x Subsidy and grants' appropriation of special accounts and funds

0 32 95 128 141 -13

* Additonanal requirements of subsidy and grants 3,172 0 0 3,172 5 3,167

x General contingencies of subsidy and grants 2,273 0 0 2,273 5 2,268

x Other additonanal requirements of subsidy and grants 899 0 0 899 0 899

-115-

Description


(LE. million)

(1-2)

Expected Change



Other expenditures ـ 26,865 88 1,105 28,058 25,789 2,269

Current 1,255 57 1,105 2,416 2,912 -495

* Taxes and fees 56 13 17 87 95 -8

x Customs 15 0 5 20 14 6

x Sales tax 34 6 5 44 55 -11

x Car license fees 4 5 4 13 11 2

x Samples examination fees 0 2 0 2 2 1

x Other 3 1 3 7 13 -6

* Subscriptions 277 0 3 280 254 25

x At domestic authorities 0 0 1 1 2 0

x At international organizations 277 0 2 278 253 26


(1-2)


(LE. million)

Description

Table (3-E) Uses: (Chapter V : Other Expenditures)

2008/2009 - 2009/2010

Expected Change



* Miscellaneous 922 43 1,085 2,050 2,563 -513

x Compensation and penalties 166 24 12 202 196 5

x Various capital expenses 0 0 1 1 0 0

x Transferred surplus 0 0 635 635 1,130 -495

x Other current and allocative transfers 756 20 437 1,213 1,236 -23

= Total other expenditures and general contingencies 25,610 32 0 25,642 22,877 2,765

* Total other expenditures 24,110 32 0 24,142 22,877 1,265

x Total other expenditures included in entities' budgets 1,461 2 0 1,464 810 653

x Appropriation of other expenditures for special accounts and funds

0 29 0 29 18 11

x Other total expenditures 22,649 0 0 22,649 22,049 600

* Additional requirements of other expenditures 1,500 0 0 1,500 0 1,500

x General contingencies for other expenditures 1,000 0 0 1,000 0 1,000

x Other additional requirements of other expenditures 500 0 0 500 0 500

(1-2)Description


-117-

(LE. million)

Expected Change


Purchases of non-financial assets ـ(investments) 14,442 1,870 17,081 33,393 43,193 -9,800

= Fixed Assets 11,950 1,870 15,425 29,245 40,215 -10,970*Direct investment (includes customs fees) 11,551 1,870 15,233 28,654 39,776 -11,122

x Dwellings 116 0 26 141 314 -173x Non-residential buildings 2,753 0 4,527 7,280 6,444 836x Constructions 4,205 1,870 7,592 13,668 24,679 -11,012x Transportation means 355 0 127 482 412 69x Transport means 107 0 34 140 84 56x Machinery and equipment 3,565 0 2,576 6,140 6,814 -674x Tools 50 0 46 97 332 -236x Fittings 388 0 301 690 681 9x Animal and water resources (cultivated assets) 12 0 5 17 15 2

* Postponed revenues expenses (operating) 399 0 191 591 439 152x Non-residential buildings 43 0 94 137 107 30x Constructions 28 0 20 48 53 -4x Transportation means 7 0 1 8 1 7x Transport means 0 0 0 0 0 0x Machinery and equipment 287 0 59 346 259 88x Tools 7 0 0 7 5 2x Fittings 26 0 1 27 1 26x Animal and water resources (cultivated assets) 1 0 16 17 13 4

= Non-produced assets 40 0 401 441 335 106* Natural assets 40 0 401 441 335 106

x Purchase of lands 40 0 387 427 315 112x Land reclamation 0 0 14 14 20 -6

= Other non- financial assets 1,751 0 1,255 3,007 2,643 364* Miscellaneous 1,751 0 1,255 3,007 2,643 364

x Interests before operations 22 0 5 27 28 -1x Scholarships 686 0 1 686 659 27x Feasibility studies for investment projects 744 0 704 1,448 1,086 361

x Advance payments 0 0 546 546 870 -324x Compensation of contractors' prices variations 300 0 0 300 0 300

= Purchase of total non financial assets and general contingencies 700 0 0 700 0 700

* Total purchase of non-financial assets 700 0 0 700 0 700

x Funds for purchase of non financial assets for special accounts and funds

700 0 0 700 0 700

-118-

(1-2)Description

Draft Budget 2009/2010(LE. million)


Table (3-F) Uses: (Chapter VI : Purchase of non Financial Assets)

2008/2009 - 2009/2010

Expected Change


Acquisition of domestic and foreign ـfinancial assets 3,482 0 80 3,562 5,711 -2,150

= Acquisition of domestic financial assets 2,142 0 80 2,221 5,478 -3,257

* Borrowing 25 0 8 33 39 -6

x To other entities 25 0 8 33 39 -6

* Shares and equities 2,117 0 72 2,188 5,339 -3,151

x In economic authorities 1,867 0 0 1,867 4,162 -2,295

x In public sector companies 250 0 0 250 1,020 -770

x In other entities 0 0 72 72 157 -85

* Treasury contribution in fund of restructuring finance 0 0 0 0 100 -100

x Treasury contribution in fund of restructuring finance 0 0 0 0 100 -100

= Acquisition of foreign financial assets 140 0 0 140 233 -93

* Shares and equities 140 0 0 140 233 -93

x To other entities 140 0 0 140 233 -93

= Total acquisition of financial assets and general contingencies 1,200 0 0 1,200 0 1,200

* Additional requirements for acquisition of financial assets 1,200 0 0 1,200 0 1,200

x General contingencies for acquisition of financial assets 1,200 0 0 1,200 0 1,200

-119-

(LE. million)

Description


(1-2)


Table (3-G) Uses: (Acquisition of Financial Assets)2008/2009 - 2009/2010

Expected Change



Domestic and foreign loans repayment ـ 26,550 232 376 27,158 20,382 6,776

= Loans repayment and amortization of domestic securities 17,666 220 241 18,127 10,963 7,164

* Amortization of securities other than shares 17,238 0 0 17,238 9,670 7,568

x Public treasury bonds 17,238 0 0 17,238 9,670 7,568

* Loans repayment 428 220 241 889 1,293 -404

x To N.I.B 0 202 0 202 193 9

x Foreign loans re-lent by treasury 366 17 171 554 467 87

x To others sources 62 1 70 133 633 -500

= Loans repayment and amortization of foreign securities 8,885 12 135 9,031 9,419 -388

* Foreign loans repayment 8,885 12 135 9,031 9,419 -388

x Foreign public debt installments 8,639 0 0 8,639 9,010 -371

x Foreign installments repaid by the entities 246 12 135 392 409 -17

-120-

(LE. million)

Description


(1-2)


Table (3-H) Uses : (Loans Repayment)2008/2009 - 2009/2010

-122-

No. Functional Classification Main Components Key Entities

1 General Public Services

• Legislative bodies • Executive bodies • Financial and Fiscal

Affairs bodies • Foreign Affairs bodies • Public Debt Transactions

- People's Assembly and Shura Council

- Presidency of State - Cabinet - National Specialized

Councils - Central Departments of

Governorates - Central Audit Agency - Ministry of Finance and

its affiliate authorities - Ministry of Foreign Affairs- Public debt department

2 Public Order and Safety

• Police and Prisons Services

• Fire Protection Services • Courts • R&D in Public Order and

Safety Areas

- Ministry of Interior - National center for

safety, occupational health and ensuring work environment studies

- Ministry of Justice - Constitutional Court - State Process Authority - Egyptian Ifta House - Fund for civil system

development - Courts Buildings Fund - Real Estate Registration

Fund

Main Components of

Functional Classification

No. Functional Main Components Key Entities Classification 3 Economic Affairs • Economic, commercial

and employment affairs management

• Agriculture, Irrigation, Animal Production and Fishing

• Fuel and Energy • Mining and Industry • Transportation • Communication • Tourism • R&D in Economic Affairs

Area

- Ministry of Foreign Trade and Commercial Representation

- Ministry of Industry and its Authorities

- Ministry of Investment Headquarter

- Stamps and Scales Department

- Supplies Directorates within the Governorates

- General Authority for Export & Import supervision

- Capital Market General Authority

- Ministry of Manpower and Manpower Directorates in Governorates

- Ministry of Agriculture and Agriculture Directorates in Governorates

- Ministry of Water Resources and Irrigation

- Veterinary Services Authority and Veterinary Medicine Directorates within Governorates

- General Authority for Fishing wealth Development

- Ministry of Electricity - Ministry of Petroleum

-123-

No. Functional Main Components Key Entities Classification - Ministry of

Transportation, Roads & Transportation Directorates within Governorates

- Bridges & Roads Authority

- General Egyptian Authority for Maritime Safety

- General Authority for Tunnels

- Civil Aviation Ministry - Ministry of

Communication and Information

- Ministry of Tourism

4 Environment Protection

• Waste Disposal Management and Treatments

• Sanitary drainage • Pollution Treatment • R&D in Environment

Protection Area

- Cairo and Giza Cleaning Authorities

- Ministry of Environment Affairs

- Regulatory system of Potable Water & Sanitation & Consumer Protection

5 Housing and

Communities Utilities

• Housing Development • Housing Affairs

Management • Communities

Development • Water Supplies • Sanitary drainage • Streets Lighting • R&D in Housing and

- Ministry of Housing & Utilities and Housing Directorates in Governorates

- Central Agency for Urbanization

- General Authority for Urban Planning

- Fund for Squatter Areas

-124-

No. Functional Main Components Key Entities Classification Utilities Area

Development

- National Authority for Potable Water and Sanitary Drainage

- Executive Agency for Potable Water and Sanitation Projects

- Real Estate Financing Authority

6 Health • Hospital Services and

Outpatient Services • Specialized Hospital

Services • Medical & Maternity

Centers Services • Public Health Services • R&D in Health Affairs

Area

- Ministry of Health and Health Directorates in Governorates

- Public Hospitals - University Hospitals - Specialized Medical

Centers - General Authority for

Hospitals and Educational Institutes

- Control Authority for Pharmaceutical Researches

- Institute of Ophthalmology Research

- National Council for Fighting and Treating Addiction

- Susan Mobarak's Regional Center for Women's Health and Development

- State's Ministry for Family and Population

7 Recreation, culture and Religious Affairs

• Recreational and sporting services

• Cultural Services

- National Council for Recreation

- National Council for

-125-

No. Functional Main Components Key Entities Classification • Broadcasting and

publishing Services • Religious Services • R&D in Recreation,

Culture and Religion

Sport - Recreation and Sport

Directorates in the Governorates

- Ministry of Culture - Theatre Art House and

the National Center for Cinema

- Supreme Council of Archaeology

- Culture Palaces Authority

- Ministry of Information and Information Authority

- Alexandria Library - Mubarak General

Libraries - National Library and

Archives

- Press Supreme Council - Ministry of Awqaf and

Regional Directorates - The Propagation of

Islam - Al Azhar Al Sharif - Supreme Council of

Islamic Affairs

8 Education • Pre-University Education • Higher Education • Unspecified Level of

Education • Assistant Services of

Education • R&D in Education Area

- Ministry of Education and Educational Directorates in Governorates

- Ministry of Higher Education

- Universities (Education Departments)

-126-

-127-

No. Functional Main Components Key Entities Classification - Islamic scholarships City- Teachers' Occupational

Academy - National Center for

Educational Researches - National Center for

Examinations - General Authority for

literacy and Adults Education

- General Authority for Educational Buildings

- Education Development Fund

9 Social Protection • Social Solidarity for

Inability and Old Age - Ministry of Social

Solidarity, Social Solidarity Directorates in Governorates

• Social Insurance • Child Pension • Addressing

Unemployment - Social Affairs - Insurance

• Social Protection - National Council for Childhood and Maternity

• Subsidies • Pensions

- National Centre for Social and Criminal Researches

2007/2008 2006/2007 2005/2006

General Total ـ 319,137 356,844 282,290 222,029 207,810

113,929 97,127 71,764 67,577 54,084

( %17 ) ( %35 ) ( %6 ) ( %25 ) ( %13 ) Public Order and Public Security affairs 15,651 13,808 13,139 11,127 10,523

( %13 ) ( %5 ) ( %18 ) ( %6 ) ( %17 )

Economic Affairs 25,452 20,975 18,591 13,914 11,227

( %21 ) ( %13 ) ( %34 ) ( %24 ) ( %4 )

Environmental Protection 1,056 994 912 828 412

( %6 ) ( %9 ) ( %10 ) ( %101 ) ( %12 )

Housing and Community Facilities 6,862 14,293 13,865 9,247 5,613

( %52 )- ( %3 ) ( %50 ) ( %65 ) ( %2 )

Health 15,919 13,494 13,161 10,436 9,664

( %18 ) ( %3 ) ( %26 ) ( %8 ) ( %10 ) Recreation,Culture and Relegious Affairs 12,870 11,159 10,975 8,729 7,635

( %15 ) ( %2 ) ( %26 ) ( %14 ) ( %10 )

Education 41,283 36,047 33,678 27,763 25,641

( %15 ) ( %7 ) ( %21 ) ( %8 ) ( %14 )

63,284 127,228 86,155 54,486 67,078

( %50 )- ( %48 ) ( %58 ) ( %19 )- ( %20 )

22,831 21,719 20,050 17,922 15,933

( %5 ) ( %8 ) ( %12 ) ( %12 ) ( %2 )

:Source Ministry of Finance

( ) Represent percentage change rate in previous FY. or period.

-132-

Public Services

Other Sectors

Supplement (4): Expenditures by Functional Classification

Budget 2008/2009

LE. Million

ActualsStatement Draft Budget

2009/2010

Social Protection

Table (2 - a) Development of Expenditures Compared to Previous

Years

Represtent the share of each sector of state's general budget draft's estimates for FY. 2009/2010

-133-

Figure (a) Expenditures by Functional Classification Draft Budget 2009/2010

Public services36%

Housing and community

utilities2%

Environment protection

0%Social

protection20%

Other sectors7%

Public order and public

security5%

Economic affairs

8%

Recreation, culture and relegious

affairs4%

Health5%

Education13%

2007/2008 2006/2007 2005/2006

General Total ـ 113,929 97,127 71,764 67,577 54,084

Wages and Compensation of Employees 18,046 22,342 9,861 7,835 6,894

Purchase of Goods and Services 12,508 10,834 4,661 4,391 3,480

Interests 70,785 52,658 50,369 47,557 36,695

Subsidy ,Grants and Social Benefits 3,733 3,056 662 694 527

Other Expenditures 3,343 2,202 1,584 1,788 1,867

Purchase of non-financial Assets (Investments) 5,514 6,035 4,627 5,312 4,621:Source Ministry of Finance

-134-

LE. Million


ActualsStatement Draft Budget

2009/2010Budget

2008/2009

Figure (b) Development of Public Services Sector in LE. Billion

2005/2006 - 2009/2010

97.1

71.867.654.1

113.9

0102030405060708090

100110120

Actual2005/2006

Actual2006/2007

Actual2007/2008

Budget2008/2009

Draft Budget2009/2010

LE. billion

Table (2 - a / 1) Public Services Sector

2007/2008 2006/2007 2005/2006

General Total ـ 15,651 13,808 13,139 11,127 10,523



Interests 0 0 0 0 0

Subsidy ,Grants and Social Benefits 301 288 267 184 56

Other Expenditures 645 580 606 381 715

Purchase of non-financial Assets (Investments ) 1,180 1,539 1,590 1,400 1,669



LE. Million

-135-

Statement Draft Budget 2009/2010

Budget 2008/2009

Actuals

Figure (d) Development of Public Order and Public Security Sector in LE. Billion

2005/2006 - 2009/2010

15.7

10.5 11.113.1 13.8

02468

101214161820

Actual2005/2006

Actual2006/2007

Actual2007/2008

Budget2008/2009


LE. billion

Table (2 - a / 2) Public Order and Public Security Affairs

2007/2008 2006/2007 2005/2006

General Total ـ 25,452 20,975 18,591 13,914 11,227



Interests 168 200 101 79 73

Subsidy,Grants and Social Benefits 4,541 4,494 2,979 1,897 308





LE. Million

-136-


Budget 2008/2009

Actuals

Figure (e) Development of Economic Affairs Sector in LE. Billion

2005/2006 - 2009/2010

25.5

11.213.9

18.6 21.0

369

12151821242730

Actual 2005/2006 Actual 2006/2007 Actual 2007/2008 Budget 2008/2009 Draft Budget2009/2010

LE. billion

Table (2 - a / 3) Economic Affairs Sector

2007/2008 2006/2007 2005/2006


LE. Million

-136-


Budget 2008/2009

Actuals

Table (2 - a / 3) Economic Affairs Sector

2007/2008 2006/2007 2005/2006

General Total ـ 1,056 994 912 828 412

Wages and Compensation of Employees 341 286 259 220 172

Purchase of Goods and Services 573 566 512 470 104

Interests 0 0 0 0 0

Subsidy,Grants and Social Benefits 0 0 5 0 0

Other expenses 0 1 1 1 0

Purchase of non-financial Assets (Investments) 142 141 135 137 136


LE. Million

- 137 -


Budget 2008/2009

Actuals


Figure (f) Development of Environmental Protection in LE. Billion

2005/2006 - 2009/2010

1.1

0.4

0.8 0.9 1.0

0

1

2

3

Actual 2005/2006 Actual 2006/2007 Actual 2007/2008 Budget2008/2009


LE. billion

Table (2 - a / 4) Environmental Protection Sector

2007/2008 2006/2007 2005/2006

General Total ـ 6,862 14,293 13,865 9,247 5,613



Interests 56 3 4 5 4

Subsidy, Grants and Social Benefits 40 4 24 8 5




LE. Million

-138-


Budget 2008/2009

Actuals


Figure (g) Development of Housing Sector and Community Utilities in LE. Billion

2005/2006 - 2009/2010

14.313.9

9.2

5.66.9

0

3

6

9

12

15

18

Actual2005/2006

Actual2006/2007

Actual2007/2008

Budget2008/2009


LE. billion

Table (2 - a / 5) Housing and Community Facilities Sector

2007/2008 2006/2007 2005/2006

General Total ـ 15,919 13,494 13,161 10,436 9,664



Interests 13 14 11 20 15

Subsidy, Grants and Social Benefits 1,170 1,547 1,601 1,106 897




LE. Million

-139-


Budget 2008/2009

Actuals


Figure (h) Distribution of Health Sector For FY 2009/2010Purchase of non-

financial Assets (Investments )

20%Other Expenditures

1%

Subsidy, Grants andSocial Benefits

7%

Wages and Compensation of

Employees47%

Purchase of Goodsand Services

25%

Table (2 - a / 6) Health Sector

2007/2008 2006/2007 2005/2006

General Total ـ 12,870 11,159 10,975 8,729 7,635



Interests 1 1 1 1 1

Subsidy, Grants and Social Benefits 1,234 1,009 1,015 666 561


Purchase of non-financial Assets (Investments ) 2,351 2,229 1,662 1,078 837


-140-


Budget 2008/2009

Actuals


LE. Million

Table (2 - a / 7) Recreation, Culture and Religious Affairs Sector

-141-

Figure (J) Development of Recreation, Culture& Relegious Affairs Sector For FY. 2009/2010

Purchase of Goodsand Services

10%


Employees59%

Subsidy, Grants andSocial Benefits

10%

Other Expenditures3%

Purchase of non-financial Assets (Investments )

18%

Figure (I) Development of Recreation, Culture& Relegious Affairs Sector in LE. Billion 2005/2006 - 2009/2010

11.211.08.77.6

12.9

02468

101214161820

Actual2005/2006

Actual2006/2007

Actual2007/2008

Budget2008/2009


LE. billion

2007/2008 2006/2007 2005/2006

General Total ـ 41,283 36,047 33,678 27,763 25,641


Purchase od Goods and Services 4,071 3,718 3,731 3,428 3,270

Interests 41 53 41 37 33

Subsidy, Grants and Social Benefits 168 154 487 130 124




LE. Million

-142-


Budget 2008/2009

Actuals


Figure (k) Distribution of Education Sector For FY. 2009/2010


Employees 80%

Purchase od Goods and

Services10%

Purchase of non-financial Assets (Investments )

10%

Table (2 - a / 8) Education Sector

2007/2008 2006/2007 2005/2006

General Total ـ 63,284 127,228 86,155 54,486 67,078



Interests 1 1 0 1 1

Subsidy, Grants and Social Benefits 62,200 126,209 85,331 53,757 66,418


Purchase of non-financial Assets (Investments ) 80 284 101 95 80


-143-


Budget 2008/2009

Actuals


LE. Million

Table (2 - a / 9) Social Protection Sector

-144-

Figure (M) Development of Social Protection Sector For FY. 2009/2010


Employees2%

Subsidy, Grantsand Social Benefits

98%

Figure (L) Development of Social Protection Sector in LE. Billion

2005/2006 - 2009/2010

63.367.154.5

86.2

127.2

0102030405060708090

100110120130140150

Actual 2005/2006 Actual 2006/2007 Actual 2007/2008 Budget 2008/2009 Draft Budget2009/2010

LE. billion

Budget

CentralAdministration

LocalAdministration

ServiceAuthorities Total 2008/2009

General Total 232,781 ـ 46,909 39,447 319,137 356,844 -37,707

Publicl Services 102,896 9,476 1,557 113,929 97,127 16,802

Public order and Public Security Affairs 14,990 0 661 15,651 13,808 1,843

Economic Affairs 5,500 3,614 16,338 25,452 20,975 4,477

Environmental Protection 196 0 860 1,056 994 62

Housing and Community Facilities 3,535 407 2,920 6,862 14,293 -7,431

Health 7,068 5,236 3,615 15,919 13,494 2,425

Recreation, Culture and Religious Affairs 8,089 785 3,996 12,870 11,159 1,711

Education 5,386 26,467 9,430 41,283 36,047 5,236

Social Protection 62,300 924 60 63,284 127,228 -63,944

Other Sectors 22,821 0 10 22,831 21,719 1,112

-145-

Statement


Changes


LE.Million

Table (2 - b) Administrative Distribution of Expenditres

LE. Million

Budget

Central Administration

Local Administration

Service Authorities Total 2008/2009

General Total 102,896 ـ 9,476 1,557 113,929 97,127 16,802

Wages and Compensation ofEmployees 13,935 4,029 82 18,046 22,342 -4,296

Purchase of Goods and Services 9,241 3,213 54 12,508 10,834 1,674

Interests 70,536 249 0 70,785 52,658 18,127

Subsidy, Grants and Social Benefits 3,574 43 116 3,733 3,056 677

Other Expenditures 3,027 72 244 3,343 2,202 1,141

Purchase of non-financial Assets (Investments) 2,583 1,870 1,061 5,514 6,035 -521

Changes

-146-


Statement


Table (2 - b / 1) Administrative Distribution of Expenditres - Public Service Sector

Budget




General Total 14,990 ـ 0 661 15,651 13,808 1,843

Wages and Compensation ofEmployees 11,648 0 27 11,675 9,956 1,719

Purchase of Goods and Services 1,584 0 266 1,850 1,445 405

Interests 0 0 0 0 0 0

Subsidy, Grants and Social Benefits 206 0 95 301 288 13

Other Expenditures 542 0 103 645 580 65

Purchase of non-financial Assets (Investments) 1,010 0 170 1,180 1,539 -359


LE.Million

-147-

ChangesStatement

Supplement (4): Expenditures by Functional ClassificationTable (2 - b / 2)

Administrative Distribution of Expenditures- Public Order and Public Security Affairs

LE. Million

Budget




General Total 5,500 ـ 3,614 16,338 25,452 20,975 4,477

Wages and Compensation ofEmployees 1,414 3,478 1,701 6,593 5,122 1,471

Purchase of Goods and Services 824 125 1,506 2,455 2,210 245

Interests 122 0 46 168 200 -32

Subsidy, Grants and Social Benefits 31 4 4,506 4,541 4,494 47


Purchase of non-financial Assets (Investments) 2,571 0 8,410 10,981 8,271 2,710

Statement Changes


-148-


Table (2 - b / 3) Administrative Distribution of Expenditures-

Economic Affairs Sector

Budget




General Total 196 ـ 0 860 1,056 994 62

Wages and Compensation ofEmployees 41 0 300 341 286 55

Purchase of Goods and Services 20 0 553 573 566 7


Subsidy, Grants and Social Benefits 0 0 0 0 0 0

Other Expenditures 0 0 0 0 1 -1

Purchase of non-financial Assets (Investments) 135 0 7 142 141 1

ChangesStatement



-149-

LE.Million

Table (2 - b / 4) Administrative Distribution of Expenditures-

Environmental Protection Sector

Budget




General Total 3,535 ـ 407 2,920 6,862 14,293 -7,431


Purchase of Goods andServices 243 51 15 309 295 14

Interests 3 0 53 56 3 53

Subsidy, Grants and SocialBenefits 34 0 6 40 4 36


Purchase of non-financial Assets (Investments) 3,124 0 2,784 5,908 13,579 -7,671

ChangesStatement



LE.Million

-150-

Table (2 - b / 5) Administrative Distribution of Expenditues - Housing

and Community Facilities Sector

LE. Million

Budget




General Total 7,068 ـ 5,236 3,615 15,919 13,494 2,425


Purchase of Goods andServices 1,350 1,035 1,562 3,947 3,481 466

Interests 10 0 3 13 14 -1

Subsidy, Grants and SocialBenefits 1,158 9 3 1,170 1,547 -377


Purchase of non-financial Assets (Investments) 2,688 0 449 3,137 2,641 496

Changes


-151-

StatementDraft Budget 2009/2010

Table (2 - b / 6) Administrative Distribution of Expenditures - Health

Sector

Budget




General Total 8,089 ـ 785 3,996 12,870 11,159 1,711

Wages and Compensation ofEmployees 6,131 645 863 7,639 6,365 1,274

Purchase of Goods andServices 1,042 25 241 1,308 1,215 93


Subsidy, Grants and SocialBenefits 615 115 504 1,234 1,009 225


Purchase of non-financial Assets (Investments) 298 0 2,053 2,351 2,229 122

LE. Million

-152-


ChangesStatement


Table (2 - b / 7) Administrative Distribution of Expenditures - Recreation,

Culture and Religious Affairs Sector

LE. Million

Budget




General Total 5,386 ـ 26,467 9,430 41,283 36,047 5,236


Purchase of Goods andServices 1,601 1,102 1,368 4,071 3,718 353

Interests 29 0 12 41 53 -12

Subsidy, Grants and SocialBenefits 88 14 66 168 154 14


Purchase of non-financial Assets (Investments) 1,882 0 2,101 3,983 3,664 319

ChangesStatement



-153-

Table (2 - b / 8) Administrative Distribution of Expenditures - Education

Sector

LE.Million

Budget




General Total 62,300 ـ 924 60 63,284 127,228 -63,944


Purchase of Goods andServices 20 29 2 51 45 6


Subsidy, Grants and SocialBenefits 62,130 70 0 62,200 126,209 -64,009


Purchase of non-financial Assets (Investments) 35 0 45 80 284 -204

ChangesStatement


Supplement (4): Expenditures by Functional Classification -154-

Table (2 - b / 9) Administrative Distribution of Expenditures - Social

Protection Sector

Budget



Service Authorities

Total 2008/2009

General Total ـ 232781.0 46909.0 39447.0 319137.0 356844.0 -37707.0

Wages and Compensationof Employees 36987.0 38867.0 10281.0 86135.0 79038.0 7097.0

Purchase of Goods andServices 15950.0 5580.0 5569.0 27099.0 23834.0 3265.0

Interests 70701.0 249.0 115.0 71065.0 52930.0 18135.0

Subsidy, Grants and SocialBenefits 67836.0 255.0 5296.0 73387.0 136761.0 -63374.0

Other Expenditures 26865.0 88.0 1105.0 28058.0 25788.0 2270.0

Purchase of non-financial Assets (Investments) 14442.0 1870.0 17081.0 33393.0 38493.0 -5100.0

-155-Supplement (4): Expenditures by Functional Classification

LE. Million

Statement ChangesDraft Budget 2009/2010

Table (2 - c) Total Chapters Compared to Previous Years

administrative body local administration service bodies total

Budget



Service Authorities

Total 2008/2009

General Total 36,987 ـ 38,867 10,281 86,135 79,038 7,097

Public Services 13,935 4,029 82 18,046 22,342 -4,296

Public Order and Public Security Affairs 11,648 0 27 11,675 9,956 1,719

Economic Affairs 1,414 3,478 1,701 6,593 5,122 1,471

Environmental Protection 41 0 300 341 286 55

Housing and Community Facilities 119 356 61 536 409 127

Health 1,772 4,188 1,542 7,502 5,583 1,919

Recreation, Culture and Religious Affairs 6,131 645 863 7,639 6,365 1,274

Education 1,783 25,346 5,690 32,819 28,261 4,558

Social Protection 113 825 13 951 684 267

Other Sectors 31 0 2 33 30 3

LE. Million

-156-

ChangesStatement


Supplement (4): Expenditures by Functional ClassificationTable (2 - c / 1)

Administrative Distribution of Expenditures - Wages and Compensation for Employees

Budget



Service Authorities

Total 2008/2009

General Total 15,950 ـ 5,580 5,569 27,099 23,834 3,265

Public Services 9,241 3,213 54 12,508 10,834 1,674

Public Order and Public Security Affairs 1,584 0 266 1,850 1,445 405

Economic Affairs 824 125 1,506 2,455 2,210 245



Health 1,350 1,035 1,562 3,947 3,481 466

Recreation, Culture and Religious Affairs 1,042 25 241 1,308 1,215 93

Education 1,601 1,102 1,368 4,071 3,718 353



LE.Million

Statement


Changes


-157-

Table (2 - c / 2) Administrative Distribution of Expenditures -

Purchase of Goods and Services

Budget



Service Authorities

Total 2008/2009

General Total 70,701 ـ 249 115 71,065 52,930 18,135

Public Services 70,536 249 0 70,785 52,658 18,127

Public Order and Public Security Affairs 0 0 0 0 0 0

Economic Affairs 0 0 0 0 0 0

Environmental Protection 122 0 46 168 200 -32


Health 3 0 53 56 3 53

Recreation, Culture and Religious Affairs 10 0 3 13 14 -1

Education 0 0 1 1 1 0

Social Protection 29 0 12 41 53 -12


LE.Million

Changes


-158-


Statement

Table (2 - c / 3) Administrative Distribution of Expenditures -

Interests

Budget



Service Authorities

Total 2008/2009

General Total 67,836 ـ 255 5,296 73,387 136,761 -63,374

Public Services 3,574 43 116 3,733 3,056 677



Environmental Protection 31 4 4,506 4,541 4,494 47


Health 34 0 6 40 4 36

Recreation, Culture and Religious Affairs 1,158 9 3 1,170 1,547 -377

Education 615 115 504 1,234 1,009 225


Other Sectors 62,130 70 0 62,200 126,209 -64,009

LE. Million

-159-



ChangesStatement

Table (2 - c / 4) Administrative Distribution of Expenditures

Subsidy, Grants and Social Benefits

Budget



Service Authorities

Total 2008/2009

General Total 26,865 ـ 88 1,105 28,058 25,788 2,270

Public Services 3,027 72 244 3,343 2,202 1,141



Environmental Protection 0 0 0 0 1 -1


Health 90 4 56 150 228 -78

Recreation, Culture and Religious Affairs 3 0 334 337 340 -3

Education 3 5 193 201 197 4


Other Sectors 22,649 0 5 22,654 21,554 1,100



-160-

Statement Changes

LE. Million

Table (2 - c / 5) Administrative distribution of Expenditures

Other Expenditures

Budget



Service Authorities

Total 2008/2009

General Total 14,442 ـ 1,870 17,081 33,393 38,493 -5,100

Public Services 2,583 1,870 1,061 5,514 6,035 -521

Public Order and Public Security Affairs 1,010 0 170 1,180 1,539 -359

Economic Affairs 2,571 0 8,410 10,981 8,271 2,710


Housing and Community Facilities 3,124 0 2,784 5,908 13,579 -7,671

Health 2,688 0 449 3,137 2,641 496

Recreation, Culture and Religious Affairs 298 0 2,053 2,351 2,229 122

Education 1,882 0 2,101 3,983 3,664 319


Other Sectors 116 0 1 117 110 7

LE. Million

ChangesStatement



-161-

Table (2 - c / 6) Administrative distribution of Expenditures

Purchase of non-financial Assets (Investments)

-163-

Features of the application of budget

Responding to Gender For the Fiscal Year

2009/2010

In the context of Ministry of Finance keenness to develop budget presentation and in light of the ministry's believe in gender responding budget as an analytical method to verify how far public spending contributing in achieving social justice through equitable distribution of budget allocations between genders and responding to gender requirement. The ministry is demonstrating the progress in its efforts and vision regarding this area.

As it is internationally common, preparing budget responds to gender requires that different ministries, especially sectoral ministries (Education, Health, Insurance, etc.) should develop their budgets in the form of budget programs to enable the Ministry of Finance to identify the financial costs of such programs to prepare such responding budgets. Despite the absence of such gender programs in the referred ministries' budgets, it was taken into account developing a methodology to estimate gender allocations in general budgets. Through which, budget appropriations are being analyzed to reflect responding to gender and to explain shares of man and women in budget appropriations. Such methodology is based on developing the classification of different allocation in the draft budget in two perspectives:

-164-

• First perspective: Services providers. • Second perspective: the beneficiaries from service. Regarding the first perspective, it has been preparing a classification for service providers through posts forms and models of all entities included in state's general budget, which are prepared for chapter I "wages and compensations of employees". It is clear that these models are important as they help in establishing a data base, through which some indicators can be done. These models provide the needed data, not only to identify the numbers but it also indicates to efficiency and explain (labor and employment status), are female and male given equitable opportunities in employment, starting from employment access in different sectors and getting the full rights to have leading posts, and to promote to all posts, as well as to get the salary without any discrimination against them in rewards, training and rehabilitation programs to develop their abilities. Furthermore, women are granted at home and abroad scholarships, missions and leaves and confirm their participation in all social, economic, cultural, health, nutrition, awareness and political fields.

As for the second perspective, regarding the beneficiaries from service, models and forms of uses chapters have been developed to prepare initial features of spending distributed as follows: • Expenditure directed to gender. • Expenditure directed to strengthen equitable opportunities. • Public expenditure and its impacts on gender. The budget was prepared to ensure data analysis and the analysis of budget expenditures according to gender through the introduction of gender responsive budget, focusing on the exerted efforts by the state to identify many issues, such as the implementation of government's commitments associated with women, and analyzing the outputs and public expenditures' impacts in the future.

- 165 -

Such achievement is essential to the next phase requirements, which needs access to detailed data on gender (both service providers and beneficiaries and identify how budget appropriations affect social and economic opportunities for man and women). Expenditures in the state's general budget draft for FY. 2009/2010 are estimated at LE. 319.1 billion, and such estimates include around LE. 137.1 billion represent what women get on level of the state's general budget expenditure chapters. Such estimates have been prepared, taking into account the initial indicators of the latest population census by gender and different age groups. The state's role in cultural and social activities, specially in informally built areas. This will be achieved through intensification of public information efforts to increase community awareness to develop women and their status, particularly in rural and desert areas, as women represent a key element in community. In general, demonstrating the implementation of gender responsive budget as it could be monitored in the state's general budget draft for FY. 2009/2010 will be as the following:

- 166 -

1- Direct Estimates of Gender: The estimates of general budget draft include about LE. 234.8 million, represent direct estimates allocated for women, child and family, aiming at developing and paying attention to women, in terms of increasing health and nutrition awareness, training of mothers and girls' health skills, the provision of preventive and medical services through the provision of information to the necessary extent to meet the rapid developments in human knowledge.

The following estimates show such entities allocations:

(LE. Million)

Entities Salaries

Purchase of

Goods and

Services

Subsidies

Grants and

social benefits

Other

Expenditures Investments Total

• National Council for Woman 11.0 7.3 1.1 0.1 9.0 28.5 • National Council for Childhood

and Maternity 6.4 1.4 0.0 0.0 41.0 48.8

• Women Health Centre in Assyout 7.5 6.2 0.0 0.1 0.0 13.8 • Suzan Mubarak Regional Centre

for Woman Development and

Health

5.8 7.0 0.3 0.3 0.0 13.4

• Children Hospital in Assyout 12.0 8.4 0.0 0.2 3.5 24.1 • Pediatric Hospital in Mansoura 19.2 14.9 0.0 1.2 0.5 35.8 • Specialized Children Hospital in

Banha 7.3 7.1 0.0 1.1 1.6 17.1

• Child Cultural Center 4.0 0.8 0.0 0.0 0.5 5.3 • National Council for Population 18.6 2.1 0.3 0.0 6.0 27.0 • Ministry of Social Insurance

(State Subsidies for Child Pension) 0.0 0.0 20.0 0.0 0.0 20.0

• State's Ministry for Family and

Population 0.0 0.0 0.0 0.0 1.0 1.0

Total 91.8 55.2 21.7 3.0 63.1 234.8 Source: Ministry of Finance

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2- Distribution on Gender (Gender-responsive budget): 1- According to the functional classification of state's general budget

expenses:

Description Total funds in

draft budget

Women

share

% of women

share LE. million LE. million %

Public services 113,929 49,906 43.8 Economic affairs 25,452 11,428 44.9 Environment protection 1,056 473 44.8 Housing & community facilities 6,862 3,271 47.7 Health 15,919 6,581 41.3 Recreation, culture & religious affairs 12,870 3,771 29.3 Education 41,283 16,610 40.2 Social protection 63,284 30,816 48.7 Other 38،482 14،267 37.1

Total 319،137 137،122 43.0 Source: Ministry of Finance

2- According to the economic classification of state's general budget expenses:

Description Total funds in

draft budget

Women

share

% of women

share LE. million LE. million %

- Wages and compensations of employees 86،135 23،337 27.1 - Purchase of goods & services 27،099 13،194 48.7 - Interests 71،065 34،739 48.9 - Subsidy, grants & social benefits 73،387 35،870 48.9 - Other expenditures 28،058 13،711 48.9 - Purchase of non-financial assets 33،393 16،271 48.7

Total 319،137 137،122 43.0 Source: Ministry of Finance

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The investment program in chapter VI "Purchase of Financial Assets" includes many projects, aiming directly to the development and advancement of women. Such projects' estimates in the state's general budget draft for FY. 2009/2010 amount about LE. 210 million. These programs target women's development in the areas of health, education, literacy as well as managing small enterprises and working to bridge gender gap between male and female in primary and secondary education. There is no doubt that, preparing gender responsive-budget still initial, as it needs to be further reviewed in the coming period, because these appropriations are still need further audits.

Documents

Analytical Statement of The State General Budget Draft For ...mof.gov.eg/MOFGallerySource/English/The Analytical... · -1- Introduction The financial statement of state' general budget