In an effort to promote greater transparency over policies in Egypt, the International Monetary Fund (IMF) is implementing several measures as part of its program to enhance fiscal transparency. This move aims to provide governments with a clear understanding of their financial situation when making economic decisions, as well as to give stakeholders such as legislatures, markets, and the public the necessary information to hold governments accountable.
Fiscal transparency plays a crucial role in strengthening the credibility of a country’s fiscal plans, which in turn can boost market confidence and perceptions of fiscal solvency. The Egyptian authorities have committed to a series of concrete actions to improve transparency, including steps to monitor and control public sector investment both on and off the budget.
One significant measure is the issuance of a decree by the Prime Minister requiring all public entities to report annual projected and executed investment spending, with target ceilings set for total public investment to be monitored. Additionally, there is now a binding requirement for the timely publication of audit reports on fiscal accounts by the Central Auditing Organization (CAO).
Moreover, public procurement contracts exceeding EGP 20 million are now being published on the procurement portal website, along with reports on payment arrears by the Ministry of Finance. Furthermore, the largest 50 state-owned enterprises are required to publish all procurement contracts and awards on the portal. Additionally, a comprehensive annual tax expenditure report detailing tax exemptions and breaks is also being made public.
These efforts by the IMF and the Egyptian government are aimed at fostering greater transparency and accountability in the country’s fiscal policies, ultimately leading to more informed decision-making and a strengthened economy.
