Dr. Rania Al-Mashat: We are working on implementing a new framework for the Ministry’s work that improves the formulation and effectiveness of development plans, maximizes the benefit from development financing, and enhances growth based on private sector participation

During the meeting of the Plan and Budget Committee of the House of Representatives to discuss the implementation rates of the 2023/2024 Economic and Social Development Plan and the most prominent economic indicators

 

Dr. Rania Al-Mashat: We are working on implementing a new framework for the Ministry’s work that improves the formulation and effectiveness of development plans, maximizes the benefit from development financing, and enhances growth based on private sector participation

 

We aim to implement sustainable policies that achieve integration between international partnerships and planning mechanisms to increase the efficiency of economic performance

 

Implementing the 2024/2025 Development Plan while committing to the governance of investment spending and giving priority to projects whose implementation rate has exceeded 70%

 

EGP 987 billion targeted investments for the private sector during the current fiscal year, representing 49% of total investments

 

Human development is a major goal of the government and more than two-thirds of government investments in the current fiscal year plan are directed to investments for human development

 

We are committed to not exceeding the investment spending ceiling of EGP 1 trillion and setting Priorities for development financing to reduce external debt

 

We have started preparing the draft development plan 2025/2026 using the modern trends of the planning law and giving priority to the private sector and enhancing the efficiency of public investments

 

Effective and efficient development planning cannot be achieved without developing work tools and preparing policies based on data and evidence

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, emphasized that the ministry, regarding to the framework after merging the Ministries of Planning and Economic Development and International Cooperation, has established an integrated framework for sustainability and financing for economic development that aims to bridge development gaps by integrating qualitative growth to become a top priority for the government.

 

This came during her participation in the meeting of the Planning and Budget Committee of the House of Representatives, to discuss the actual implementation of the economic and social development plan for the fiscal year 2023/2024 and the most prominent economic indicators, chaired by Dr. Fakhry Al-Fiqi, Chairman of the Planning and Budget Committee, and in the presence of the honorable representatives.

 

Al-Mashat explained that the goals of qualitative growth in Egypt aim beyond GDP growth to include the distribution of benefits, sustainability, and human development, clarifying that the framework is based on three main pillars: enhancing macroeconomic stability and implementing structural reforms, identifying and bridging development gaps in various sectors, as well as optimal allocation and utilization of resources and stimulating private sector investments.

 

She added that the ministry's framework includes formulating economic development policies supported by evidence and data, by focusing on human development, industrial development, small and medium enterprises, technology, entrepreneurship, sustainable infrastructure, green investments, and more, as well as monitoring and evaluation, building a resilient economy capable of withstanding shocks by working to enhance macroeconomic resilience and stability, implementing structural reforms to increase competitiveness, improve the business environment, support the flexibility of macro-financial policies, and transition towards a green economy, in addition to optimal allocation and utilization of resources and mobilizing local and foreign financing to achieve sustainable development through an integrated national financing framework that enhances resource allocation to priority sectors, stimulates private sector investments, and accelerates progress towards achieving sustainable development goals, as well as sustainable economic growth, which includes sustainable development goals, and growth quality.

 

Al-Mashat highlighted that the ministry launched the Integrated national financing frameworks (INFFs) during the Future Summit within the meetings of the 79th session of the United Nations General Assembly in New York in September 2024. It was developed in line with the key national strategies and policies, the national structural reform program, the state ownership policy, and the sustainable sovereign financing framework. It is also aligns with the economic and social development plan and the reform program supported by the International Monetary Fund.

 

Furthermore, Al-Mashat added that the integrated strategy for financing development in Egypt supports the Egyptian government's efforts to achieve sustainable development goals, and its mechanisms and procedures for cooperation, decision-making and involving relevant parties in Egypt can contribute to bridging the financing gap and reduce future financial risks. The strategy included focusing on priority sectors (social protection, education, health, sanitation, climate change, women's empowerment, transport, and communication), and can be expanded to include other sectors.

 

Regarding the implementation of the economic and social development plan for the current year (2024/2025) and efforts to govern investment spending, Al-Mashat confirmed that the ministry has been working since the merger to improve the efficiency of government spending and increase the effectiveness of public investments to achieve the targeted development impact, as it has taken several measures to govern public investments and rearrange the priorities of the 2024/2025 plan, while affirming commitment to the specified ceiling for public investments, which is set at EGP 1 trillion.

 

In light of Prime Minister Decision No. 739 of 2024, the Minister confirmed that the "Technical Secretariat of the Public Investment Governance Committee chaired by the Ministry of Planning, Economic Development and International Cooperation" has been formed, which in turn prepared the design of a "component for monitoring public companies" within the integrated system for plan preparation and monitoring system. The Ministry also worked to qualify cadres to deal with this system by conducting training for the relevant entities on entering the required data for public companies' investments.

 

Regarding improving the efficiency and governance of government spending, and emphasizing adherence to the investment spending ceiling, "Al-Mashat" also added that the government is also keen on adhering to the external borrowing ceiling and limiting it to support the budget and completing some priority projects with increasing concessional financing for the private sector, which was reflected in the downward trend in the size of the external debt.

 

"Al-Mashat" also highlighted that the implementation of the current year's plan is based on a number of determinants, the most prominent of which the provision of investments required for projects expected to be completed, focusing on projects with an execution rate exceeding 70%, and excluding new projects that have not yet started, considering the impact of economic conditions on The high cost of public investment, and working on exiting the financing of some projects while allowing private sector participation in light of the State Ownership Policy Document.

 

Moreover, The Minister of Planning, Economic Development and International Cooperation stated that the total investment structure of the fiscal year 2024/2025 plan is witnessing an increase in the targeted total investments, approaching EGP 2 trillion, including EGP 1 trillion in public investments, representing approximately 50.3% of total investments, and EGP 987 billion in private investments, representing 49.7% of the total. The plan aims to direct more than two-thirds of government investments to human development, representing 42.4%, confirming the government's continued bias towards these development sectors, and the state's orientation towards building the Egyptian citizen, followed by the drinking water and sanitation sector, which accounts for 25.4% of total government investments.

 

Regarding the new methodology set by the Ministry to prepare the draft economic and social development plan for the next fiscal year 2025/2026, H.E. Dr. Rania Al-Mashat emphasized that the Ministry of Planning, Economic Development and International Cooperation has started preparing the draft document for the economic and social development plan for the fiscal year 2025/2026, in consultation, coordination and cooperation with all ministries, public authorities, governorates, the private sector and civil society within the framework of commitment to implementing General Planning Law No. (18) of 2022, in addition to the Unified Public Finance Law No. (6) of 2022 and its executive regulations, as the state's general budget will be prepared on the basis of preparing the medium-term budget framework (for the budget year and three upcoming fiscal years), (each fiscal year separately), within the framework of the participatory budget and an integrated planning system based on inclusive growth, sustainability standards and achieving public spending efficiency within the framework of comprehensive and balanced development to achieve the goals of long-term national planning and the state's medium- and short-term priorities.

 

Al-Mashat further underscored that, within the framework of the ministry's new work approach, we have started preparing the economic and social development plan for the coming year 2025/2026, which will be discussed successively with all ministries and state entities according to a comprehensive development perspective based on basic pillars, starting with the targets and principles of Egypt's Vision 2030, and in a manner that integrates with the priorities of the government's work program and sectoral strategies and plans, and within the framework of the effective implementation of the modern trends of the General Planning Law, and in a manner that supports efforts aimed at stimulating the role of the private sector in sustainable development by implementing the "State Ownership Policy."

 

H.E also reaffirmed that these pillars are the compass through which we determine the priorities of projects for the next year's plan, through which we will also continue to follow the advanced planning tools that we have developed to raise the efficiency of public investment, governance and follow-up of international funding and public investments, follow-up and evaluation of performance, coordination and cooperation with ministries to improve the quality of development plans through the "Preparing the Economic and Social Development Plan" guide. Additionally, providing spatial information that supports the planning process through the "Spatial Information Infrastructure System."