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Private funds to give 20 pct of revenues to state budget: Finance ministry

Shake-up in rules for controversial government accounts will inject up to LE15 billion into state budget, claim officials

Ahram Online, Wednesday 18 Jul 2012
Momtaz El-Saeed
Egypt's current Finance Minister Momtaz El-Saeed (Photo: AL-Ahram)
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Egypt's Finance Minister Momtaz El-Saeed has ordered that 20 per cent of revenues from the country's 'private funds' be added to the state budget. 
 
Private funds are monies raised by Egyptian state institutions through means other than customs or taxes, such as revenue from hospital fees or parking tickets.
 
Going by the 2012/13 draft budget, a fifth of these funds will now go into the state's main coffers, in an injection the ministry says will be equivalent to LE10-15 billion per year.  
 
In a Wednesday statement, El-Saeed said this new arrangement applies to all private funds, with monthly payments to be made from their net revenues before any deductions.
 
Monies will be deposited with the Central Bank of Egypt (CBE) in the Single Treasury Account (STA), he said.
 
Funds in the STA would then be injected into the budget, with auditors at various institutions reponsible for collection, El-Saeed added.
 
Managers of private funds will be charged with submitting montly statements to the finance ministry which detail total fund revenues and
expenses.
 
According to El-Saeed, around LE36.1 billion is currently being held in 4,737 private funds, 4,225 of them in local currency and 512 in different foreign currencies. 
 
Experts, however, believe the true figure to be much higher.
 
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