Egypt to implement Unified Public Finance Law

Egyptian Finance Minister, Mohamed Maait,  has endorsed the executive regulations for the Unified Public Finance Law, as part of the Ministry of Finance’s efforts to establish financial discipline in the preparation, execution, and oversight of the government budget and economic entities, ensuring optimal utilisation of state resources, as per a Cabinet statement published on Monday.

The regulations – which are mandatory for administrative entities to follow –  encompass components for the implementation of the government budget and economic entities based on programme and performance budgeting.

They include procedures and rules for preparing the medium-term budget framework, introduced by the Unified Public Finance Law. This framework relies on each ministry developing a budgetary outlook and its needs for the next three years, in light of strategic objectives.

Moreover, the new law aimed at developing a comprehensive vision for the state budget for the next three years, along with measures and controls to limit the exhaustion of financial appropriations before the end of the fiscal year without genuine need by the entities.

The executive regulations have set governance guidelines for funds and special funds following the implementation of the Unified Public Finance Law.

Following the enactment of this law, no funds or special accounts can be established without a law endorsed by the House of Representatives, based on a request and proposal from the government. This is to govern the establishment of funds and special accounts.

As per the regulations, an expansion in granting some new authority is required for budget implementation and achieving flexibility in facing emergencies, during budget preparation. This is done by increasing the authority for transferring appropriations from one item to another within the budget of the same entity, within the same budget chapter.

Moreover, the correspondence and financial instructions sent via government email and through the Ministry of Finance systems, as well as financial approvals sent through automated systems linked to approved electronic authentication, are considered official correspondences with the same legal validity as the endorsed original documents, according to the rules.

Furthermore, the established criteria and conditions must be met by those tasked with working in the budget, financial affairs, and accounting departments which is aimed at enhancing the efficiency of the personnel and ensuring they receive the necessary qualifications and training.

The guidelines also defined the responsibilities and jurisdictions of representatives of the Ministry of Finance within administrative entities to prevent overlap or confusion between the roles of Ministry of Finance representatives and financial officials within administrative entities.

Additionally, they included provisions requiring administrative entities to adhere to the principles of transparency, disclosure, and regular publication of their budgetary data. This includes publishing special reports and performance-related data for each entity, allowing for community participation.