The Egyptian Ministry of Finance revealed that three main sectors account for nearly 90% of the new budget for the fiscal year 2021/2022. According to a statement, Finance Minister Mohamed Maait indicated that approximately 30.6% of the performance-based budget for the upcoming fiscal year is allocated to projects aimed at improving the living standards of citizens. Meanwhile, around 27.3% of the new budget is designated for human development, and 31.3% is aimed at achieving economic development and enhancing government performance, as it is considered one of the strategic objectives of the government's work program.
Furthermore, he explained that the performance-based budget focuses on the speed and accuracy of achievements and aims to enhance government performance. It ensures the unification of efforts in similar activities across various sectors and links the ministries' programs to the government's objectives; as it serves as one of the tools for economic reform to implement "Egypt Vision 2030" and achieve sustainable development across various economic, social, and environmental dimensions, which contributes to improving the efficiency of public spending and ensuring the optimal use of state resources and financial allocations for different entities.
On the occasion of the issuance of the first volume of the performance-based budget for the upcoming fiscal year, Maait stated that 82% of the budgetary authorities and 69% of economic entities committed to submitting their budgets for the forthcoming fiscal year in accordance with programs and performance.
He noted that the efficiency of 1,800 representatives from budgetary entities has been enhanced within the framework of the national program for building employees' capacities and qualifying them to use the unified model for preparing performance-based budgets, and preparing a guide that includes defining program structures, basic concepts, performance measurement indicators' objectives, how to design them, and the steps for preparing and implementing the budget.
He added, "We have made significant progress in developing the public financial management system by implementing performance-based budgeting alongside itemized and structural budgeting, which reinforces financial discipline and provides options for decision-makers during the budget cycle concerning spending priorities that impact the quantity and quality of services."
The Egyptian minister also addressed the appreciation from international institutions, including the International Monetary Fund and the World Bank, regarding Egypt's experience in applying the "performance-based budget."
Meanwhile, Deputy Minister for Financial Policies and Institutional Development Ahmed Koushk affirmed that financial and economic policies are witnessing unprecedented development aimed at achieving growth in Egypt, pointing out that the "performance-based budget" presents an opportunity to update the "budget cycle" in Egypt. He emphasized that utilizing gender-responsive budgeting helps the government establish the foundations of equality and social integration for all citizens, especially the vulnerable groups, and enhances the efficiency of the "performance-based budget" by deepening the close ties between strategic planning and budget allocations.
