Planning Minister Discusses, in the Senate, the Financial, Economic, and Investment Committee Report Regarding the Draft Law Approving the Economic and Social Development Plan for FY 2023/24

The Minister of Planning and Economic Development, Dr. Hala El-Said, discussed the financial, economic, and investment committee report addressing the draft law approving the economic and social development plan for fiscal year 2023/24 during the Senate plenary session, with the attendance of the President of the Senate, Counselor Abdel Wahab Marzouk, along with other members of the Senate.

 

During her speech, Dr. Hala El-Said clarified that the plan document’s directives, targets, and development programs were formulated following a participatory approach, a constructive national dialogue that brings all segments of society together, to strengthen the bonds of cooperation, and integration between government agencies, the private sector, and civil society, in a way that ensures maximizing the public benefit from concerted development efforts within the framework of the objectives of the general plan of the state.

 

Furthermore, El-Said addressed the repercussions of the Russian- Ukrainian conflict on the global economy, which was greatly manifested in the shortage of commodities supply on international markets, while the irregularity of the supply chains is reflected in the unprecedented hike in prices of food, energy, and principal metals. Moreover, the accumulated inflation pressure on the whole world has led central banks around the world to race to lift interest rates, making their monetary policies stricter. 

 

 

El-Said continued that these developments caused an international shortage of liquidity, and an increase in the international debt to a new record level, reaching $300 trillion in 2022, the decrease of the international reserve of foreign currencies, and confusion in the exchange market in light of the limited fiscal space for the confrontation of the crisis.

 

Moreover, El-Said tackled the negative impact of these developments on global economic growth, indicating its decline to 3.4% in 2022 from 6.3% in 2021. It is also expected to continue this trend, reaching 2.8% in 2023 according to International Monetary Fund estimates. She also added that this is equally true for international trade growth rates and direct foreign investment flow. These are continuous slowdowns and unprecedented inflation rates. It is imperative to note that these indicators reflect the challenges facing the global economy as its repercussions extend to all countries of the world without any exception.

 

El-Said explained that Egypt is not immune to the challenges and risks of uncertainty posed by the Russian-Ukrainian crisis, noting that Egypt has taken rapid precautionary measures and proactive steps to secure sources of supply in the immediate term, in addition to adopting some programs and initiatives to swiftly provide social protection, especially for the most affected groups. Then she pointed out that it is impossible to overlook the negative effects of the crisis or underestimate its repercussions.

 

Besides, El-Said presented the most important pillars that the 2023/24 plan is based on, clarifying that it is represented in full along by the national strategic axes for human rights, emphasizing the right to development, which the Egyptian state attaches paramount importance to in its development directive, along with the consistency and compatibility with the objectives of the national agenda to achieve sustainable development within the framework of Egypt’s Vision 2030, as well as the careful application of the provisions of the state's general planning law as the legislative framework for the planning system.

 

El-Said added that the pillars also included the fulfillment of constitutional entitlements related to public spending allocations for health, school and university education, and scientific research, which are specified at no less than 10% of the gross national product, in addition to continuing to use evidence-based development planning using indicators, and international and local reports, such as the sustainable development report for 2022, the Egyptian governorates competitiveness index 2021/22, the birth and death registration system on the national level, and the local human development index 2022/23.

 

Finally, El-Said added that the pillars of the plan also included the application of modern development and planning concepts to raise the efficiency and effectiveness of the planning process, such as strategic planning, inclusive growth guides, balancing programs and performance, the gender-responsive plan, environmental sustainability standards, and the green economy.