H.E. Dr. Rania A. Al-Mashat: We continue to enhance the private sector’s contribution to economic activity through the governance of public spending.

During Press conference Held at the Ministry’s Headquarters in the New Administrative Capital:

 

H.E. Dr. Rania A. Al-Mashat: We continue to enhance the private sector’s contribution to economic activity through the governance of public spending.

We have initiated procedures to activate the governance of public spending in coordination with all ministries and national entities, with priority given to projects that have exceeded 70% completion.

We are developing a financial equation that promotes economic and social equality and ensures the just distribution of public spending across governorates.

The Integrated National Financing Strategy strengthens the mobilization of both local and foreign funding to close development gaps.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, reviewed the ministry’s efforts in the governance of public spending and the Integrated National Financing Strategy for development during the first press conference held by the ministry following the merging of the Ministry of Planning, Economic Development, and International Cooperation.

 

H.E. Minister Al-Mashat highlighted the structure of public spending in the Economic and Social Development Plan for the fiscal year 2024/2025, noting that it includes projects and investments in human and social development amounting to 42%, industrial development and infrastructure projects amounting to 37%, and local development projects and investments amounting to 21%.

 

H.E. Dr. Al-Mashat also pointed out the growth of investments in the human and social development sector over the past decade, which increased from EGP 29.3 billion in the fiscal year 2015/2016 to EGP 161.9 billion in 2024/2025. Additionally, investments directed to the governorates have grown by 315% over the past 10 years, rising from EGP 6.8 billion in 2014/2015 to EGP 28 billion in 2024/2025.

 

Governance of Public Spending

 

Regarding the governance of public spending and the monitoring and evaluation systems, H.E. Minister Al-Mashat explained that the governance framework is based on three key pillars: Planning investments, where project evaluation criteria have been updated, entities are required to submit feasibility studies, investment calculation methodologies have been developed, geographic information integration has been enhanced, and local development programs are activated using modern planning tools; Allocating investments, through the development of a financial equation to address developmental gaps between governorates and linking investments to incentives, while ensuring the integration of investment and current expenditure; and Monitoring investment implementation, through the automation of both desk and field monitoring processes and the inventory of investment assets.

 

H.E. Minister Al-Mashat highlighted that the Ministry of Planning, Economic Development, and International Cooperation has implemented the financial equation for preparing the public spending plan proposals for the governorates starting from the fiscal year 2021/2022. The importance of this financial equation lies in ensuring the just distribution of government investments across Egypt’s governorates, promoting economic and social equality between different regions, and advancing sustainable development nationwide. This distribution relies on a set of criteria, including poverty indicators, human development index at the governorate level, population size, and average previous investments. A similar financial equation was adopted for distributing investments among centers and districts within each governorate starting from the fiscal year 2023/2024, relying on the population indicator alone for investment distribution.

 

Regarding the governance of public spending and the reordering of priorities for the 2024/2025 plan, H.E. Dr. Al-Mashat mentioned that the Ministry has coordinated with relevant ministries and entities to establish executive steps for investment spending governance. This is in light of the Prime Minister’s directives to prioritize projects that have exceeded 70% completion and those expected to be finalized, with a firm stance against approving any additional funds for entities under the 2024/2025 plan. Coordination is also underway with all ministries and governorates to identify any financial arrears, and work on new projects has been postponed, with no new protocols or contracts being signed unless coordinated with the Ministry.

 

The Integrated National Financing Strategy

 

H.E. Dr. Al-Mashat also highlighted the Integrated National Financing Strategy for financing sustainable development, which was launched by the Ministry during the Summit of the Future held within the framework of the 79th session of the United Nations General Assembly in New York in September 2024. H.E. explained that the strategy was developed in alignment with key national strategies and policies, the National Structural Reform Program, the State Ownership Policy, and the Sustainable Sovereign Financing Framework. It also aligns with the Economic and Social Development Plan and the reform program supported by the International Monetary Fund.

 

The Integrated National Financing Strategy will support Egypt’s government efforts to achieve the Sustainable Development Goals (SDGs). Its mechanisms and procedures for collaboration, decision-making, and engaging relevant stakeholders in Egypt will help close the financing gap and mitigate future financial risks. The strategy focuses on priority sectors and can be expanded to include other areas as necessary. H.E. Dr. Al-Mashat emphasized that the approach is centered on the catalytic role of public capital in mobilizing private financing sources and integrating them into financial tools used to bridge the financing gap and increase resource flows into key sectors, while also enhancing innovative financing mechanisms.