CAIRO: The Egyptian Ministry of Finance will adopt an austerity policy in its financial plan for 2012-2013 by rationing subsidies and public spending. The Ministry demands that different ministries and authorities develop programs to execute the objectives of the January 25 Revolution. “The new budget will take into account the mistakes of the current budget by rationing certain public spending in the authorities,” a ministry source said. “The ministry will receive the different proposals from authorities and discuss them with officials.” The new budget will focus on achieving the objectives of the January 25 Revolution through building confidence between the government and the citizens. “Achieving confidence requires economic and social transparency, so it is not suitable to withhold state resources from the budget,” a ministry statement read. “There is a need to increase job opportunities, support democratic principles, confront corruption and prosecute those responsible for corruption crimes.” “The new budget plan includes the same issues included in the previous years,” said former Head of the Public Budget Sector Mahmoud al-Shazly. “The problem is how to implement the plan to achieve objectives.” Al-Shazly also blamed the performance of the finance ministry and other authorities for not achieving the goals of the budget plan. “The ministry will not achieve its objectives so long as the officials remain the same,” he continued. “There is a need to change the ideas and policies adopted by those officials.” He also criticized the ministries who seek budgets greater than their needs. The new financial plan focuses on increasing national income and achieving economic growth by linking it to wages. It also supports increasing investment, exports and long-term financial balance.
