Egypt/ 6.2 Public cultural expenditure  

6.2.2 Public cultural expenditure broken down by level of government

The following table shows allocations of culture, youth and religious affairs sectors compared to other governmental sectors, as it is in the state budget for the year 2007-2008.

 http://www.mof.gov.eg/Arabic/Mwazna2007-2008/Services/Services-08-02.pdf

 

Item

Uses

Resources

Deficit

2007 -2008

2006 - 2007

2007 -2008

2006 - 2007

2007 -2008

2006 - 2007

Total General

27،926،860،000

21،960،273،000

9،748،480،000

12،934،698،000

18،178،380،000

9،025،575،000

General services

678،082،000

718،985،000

455،840،000

563،494،000

222،242،000

155،491،000

Defense and national security

8،500،000

7،500،000

8،500،000

7،500،000

 

 

Public order and safety affairs

578،496،000

641،394،000

574،400،000

638،627،000

4،096،000

2،777،000

Economic affairs

8،666،288،000

5،322،267،000

3،608،095000

3،503،212000

5،058،193،000

1،819،055،000

Environment protection

768،721،000

654،291،000

403،950،000

440،250،000

364،771،000

214،041،000

Housing and communities facilities

3،084،0241،000

2،722،819،000

266،110،000

2،661،075،000

2،817،914،000

61،744،000

Helath

2،601،807،000

2،325،257،000

792،528،000

791،133،000

1،809،279،000

1،534،124،000

Youth, Culture and Religious affairs

3،352،296،000

2،159،550،000

1،905،468،000

1،382،409،000

1،446،828،000

777،141،000

Education

8،115،000

7،336،006،000

1،685،618،000

2،879،708،000

6،429،649،000

4،456،298،000

Social protection

73،379،000

72،204،000

47،971،000

67،300،000

25،408،000

4،904،000

 

Field Marshal Mohamed Hussein Tantawi, head of Supreme Council of Armed Forces adopted the budget for fiscal year 2011/2012 after getting it approved by the Council of Ministers.

 The budget Included a total expenses of 491 billion pounds, an increase of 15% from the previous year. The volume of spending on social issues in the new budget is 54% of the total expenses, in order to protect low-income people against the risk of food prices fluctuations in world market, the education share of expenses is 52 billion pounds, 10% increase from the previous fiscal year. Another increased allocations was in the health sector by 17% to reach 23.8 billion pounds, as well as the housing sector allocation and community development by 39% to 16.7 billion pounds.

 One of the most important features of the budget in the year 2011/2012 is the protection of government workers, as well as pensioners. Total wages allocations reached 118 billion pounds, an increase of 22% from the previous fiscal year. These allocations included the cost of 15% increase in wages of all workers at a cost of 3 billion pounds, also included in the new budget the cost of financing the first phase of wages reform program of in the government sector, which approved raising minimum wage for workers in an unprecedented 75% to 200%, starting July 2011 .

Two million of state employees benefits from this increase, at a total cost of 9 billion pounds per year. this procedure serves the purpose of closing the unacceptable gap between government and private sector employees, the pensioners got the largest share in the credits for the social aspect of the budget, their pensions increased by 15% of the gross income starting April 2011, the treasury will bear the total cost of this increase, which amounted to 6.5 billion pounds and benefits eight million pensioner and beneficiary.

 Also the budget included increased pension contributions from 2008 to be 30% instead of 20%, without a limit, as an initiative from the government to the work of equality between pensioners and their beneficiaries and workers in the state, this increase will help rsising and improving the living standards of pensioners and their beneficiaries, and the cost of financing such an increase is 2.8 billion per year and the number of beneficiaries, including 7.5 million pensioner and beneficiary, 1.2 billion pounds has also been allocated to finance the commitment of the Treasury to bear the cost of the annual increase in pensions, which began in July 2010 , other than the 17 billion pounds allocated by the State Treasury for the social insurance funds paid interest on the debt to the pension funds .

It is noteworthy that the government had introduced earlier a draft budget includes a deficit in the range of 170 billion pounds, which is equivalent to 11% of GDP, but the community dialogue that took place on this project leaned toward not to expand the deficit significantly and avoid future generations huge increments in government debt, this was a direction influenced by the Supreme Council of armed Forces, especially in light of the economic conditions experienced by the country.

The government has subsequently cut public spending and rearranged priorities while maintaining a balance between the cut and the commitment to implement important steps to stay on track toward social justice, as well as increased investment spending in support of growth.

The deficit fell by about 36 billion pounds to 134 billion pounds, the equivalent of 8.6% of GDP, but the fiscal policy is still expansive and include programs to stimulate economic activity and more support to social justice when compared to the draft budget prepared before January 25th revolution, which was targeting a deficit in the range of 7% of GDP.

The draft of the state budget for next fiscal year 2013/2014 reaches almost 820.1 billion pounds represents the size of funds, distributed between expenses of 692.4 billion pounds, and the requirements of the acquisition of financial assets amounting to 13.2 billion pounds, and finally pay off the loans of local and foreign debts in a total of 114.5 billion pounds.

The distribution of 692.421 earmarked for expenditure on various sectors, allocations of public services in the first rank of allocations by 37% of the total budget, and provisions of social protection in second place with 29%, followed by education allocation in third place with 12%, and came in fourth place, " the rest of the sectors " by 7%, and the percentage of health with public safety by 5%, while the percentage for housing and community Facilities 3%, and came in last place provisions to protect the environment of 0.2%

the Ministry of Health budget  share was 32.736 billion pounds, up 19% from last year's budget , the Ministry of Education was allocated 81.251 billion pounds to, up 27% , and got the sectors of youth, culture and religious affairs 23.403 billion pounds, an increase of 15% from the previous year's budget , also 1.460 billion pounds allocated to protect the environment ,

Social protection got the lion's share, which got to 191.552 billion pounds , and got the housing sector and community facilities at 22.003 billion pounds.Public services got 240.228 billion pounds, an increase of 21% from last year, The affairs of public order and safety received 32.681 billion pounds, up 24% from last year, while Economic Affairs was allocated 36.16 billion pounds ,

30.947 billion pounds was allocated for the rest of the sectors, including the budget of the Ministry of Defense.

According to the state budget for 2014/2015, funds have decreased by unexpected numbers. Subsidies on petroleum products were decreased and were linked together with supply commodities, wherein the amount allocated to services for youth, culture and religious affairs reached up to 28 billion and 356 million Egyptian Pounds without clear indication of the share each of the three sectors received. However, this is the first budget that has dared to take direct action to raise the amount of funding, which relates to the biggest justification that had been made by all former Presidents – that is they always justified their inability to spend heavily on educational, cultural, tourism, youth and other sectors and their services.


It is broken down into:

1. Artistic expenditure (Chapter 3)

It is investment expense.

2. Administrative expenditure (Chapter 1)

It is the disbursements for permanent and temporary employees in the form of wages and wages-related insurance privileges. Workers are rewarded and incentivized for their extraordinary efforts and overtime. Also distinguished employees are rewarded to encourage them to make further progress.

3. Current expenditure (Chapter 2)

They are the expenditures specified to cover the costs of cultural products and operating materials; they include advertisements.

 

  • Rewards for non-workers in the State (Chapter 4)
  • Expenses do not belong to cultural activities (Chapter 5)
  • Expenses of installation and equipments (Chapter 6)

 

The following tables show the expenditure ways in a number of the Ministry of Culture bodies[1].

Table 2: Expenditure Statement of the Cultural Production Affaits Sector 2009-2010.

Administrative expenditure

Investment expenditures

Current expenditures

6.575.000

Staff wages

500.000

Chapter 6

2.897.000

Chapter 2

1.288.000

Chapter 4

 

 

7.000

Chapter 5

13.267.000

Total



Table 3: Expenditure Statement of the Artistic House for Fold Arts 2009-2010

Administrative expenditure

Investment expenditures

Current expenditures

18.881.000

Staff wages

5000.000

Chapter 6

4.399.000

Chapter 2

 

 

3.006.000

Chapter 4

9.000

Chapter 5

31.295.000

Total

 

 

 

 

Table 4: Expenditure Statement of the National Centre for Cinema 2009-2010

Administrative expenditure

Investment expenditures

Current expenditures

8.090.000

Staff wages

5000.000

Chapter 6

1.890.000

Chapter 2

 

 

390.000

Chapter 4

0

Chapter 5

10.370.000

Total

 

Table 5: Expenditure Statement of the Artistic House for Theatre 2009-2010

Administrative expenditure

Investment expenditures

Current expenditures

31.687.000

Staff wages

12.000.000

Chapter 6

8.500.000

Chapter 2

 

 

7.000.000

Chapter 4

50.000

Chapter 5

59.237.000

Total

           

 

 

 

 

 

Table 6: Expenditure Statement of National Theatre Centre 2009-2010

Administrative expenditure

Investment expenditures

Current expenditures

2.566.000

Staff wages

0

Chapter 6

475.000

Chapter 2

 

 

330.000

Chapter 4

1.000

Chapter 5

3.372.000

Total

           

 

Table 7 : Expenditure Statement of the Supreme Council of Culture 2008-2009 [2]
 

Amount in Egyptian pounds

Expenditures

14.236.000

Chapter 1 (wages)

2.600.000.

Chapter 2 (merchandise and services inputs)

 

Chapter 3

5.340.000

Chapter 4 (Rewards for non-state workers)

2000

Chapter 5 (non-cultural activities)

200.000

Chapter 6 (constructions, devices and equipment)

 

We attempted to update these figures for the following years, but the employees in these administrations declined our requests to provide any data, based on an order from then Minister of Culture, Dr. Saber Arab, not to disclose any financial details of the ministry, although these employees refused to give their names or to give us a copy of these alleged instructions.



[1] From an interview with Ms. Fatma Al-Maadoul, 1st Deputy Minister of Culture for Cultural Production Affairs Sector
[2] From an interview with Dr. Emad Abu Ghazi, secretary of the Supreme Council for Culture

 


Chapter published: 07-04-2016


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