The devolution draft law aims to support state resources and face increases in government spending on the expenditure item of the state`s budget, said the Ministry of Finance.
The Ministry of Finance said in a press statement on Thursday that the draft law on the devolution (transfer) of a percentage of private fund balances and private accounts to the state`s public treasury, which was approved by the House of Representatives recently in preparation for ratification by President Abdel Fattah Al-Sisi, aims to support state resources and to face increases in government spending on the expenditure item in the state`s budget.
The ministry added that the draft law includes the transfer of a percentage of private fund balances, private accounts, units of a private nature, and surpluses of public bodies to the public treasury of the state. This comes in the context of the growth of some private funds and the shortage of resources of the state treasury.
The draft law stipulates that rates ranging from 5% to 15% of the funds shall be transferred or derived from fund balances that exceed EGP 5m, as well as 25% of the surplus balances of public service, economic, and national bodies.
It is targeted to achieve additional resources for the state treasury in fiscal year (FY) 2018/2019 after adding these rates on these funds to achieve about EGP 4.3bn.
Under this bill, research projects funded by grants, international agreements or donations, university hospital accounts, research and scientific centres, health departments, hospitals, health service improvement funds, health and social welfare funds, and social housing projects will be excluded from the devolution law.