CAIRO - In an attempt to find a solution for the big budget deficit, the new Minister of Finance came up with the unconventional suggestion of implementing a draft law that could cut government spending. Minister Momtaz el-Saeed finally liberated himself from the old strategy of forcing new taxes on citizens or cutting the subsidy on basic commodities the former ministers of finance adhered to whenever new financial resources needed to be found. He decided to cut spending in a different way, by reducing the huge allowances to senior employees, the needless use of luxurious vehicles by governmental officials and power consumption as well as telephone bills in governmental departments. All this could save some LE24 billion ($4 billion). Endorsing this law and strategy would not only cut spending but also save the country from seeking a loan with tough conditions from international institutions. Following this strategy would also give Ganzouri's Government the public's trust and motivate the citizens to purchase treasury bonds or shares in future development projects. It is quite promising to see governmental officials attempting to find solutions for the financial crisis removed from the old policy of enforcing new taxes, which always resulted in increasing the plight of the poor and middle class. On the other hand, the Government is considering action against corrupt businessmen who purchased land for reclamation on the Cairo-Alexandria Desert Road at very low prices and turned the plots into luxurious high-income settlements. The Government decided to collect the price differences from the owners of this land, estimated at 21,000 feddans, along with fines for violating contractual conditions. Surely, economic experts could suggest innumerable options of how to solve the present economic crisis, apart from seeking foreign assistance that always comes with strings attached, like high interest rates or a huge political price.
