10/05/2008
Al-Akhbar Newspaper 2008/MAY /10
With the sudden demand to pump LE 12 billion in cash toward low-income citizens, the government is in desperate need to find a funding solution to confront this international increase. Experts say that President Mubarak has chosen the best option, which is to grant various increments to a select category, in addition to a rise in the value of pensions. However, such increments will vastly affect the state budget. The question now is: how will these increments be financed? ( Available in Arabic – German in PDF )
With the sudden demand to pump LE 12 billion in cash toward low-income citizens, the government is in desperate need to find a funding solution to confront this international increase. Experts have brought forward various solutions, such as borrowing the money from banks or internationally, or banknotes printing; however only one deems reasonable. President Mubarak has chosen to address this situation with various increments to a select category, in addition to a rise in the value of pensions. The main aim is to assist the low-income citizens during this international increase, thus find a solution which will not have a direct affect upon them. The question now is: how will these increments be financed? The Plan and Budget Committee has submitted a report which includes methods to obtain resources from various sources. Such methods include raising the price of natural gas, thus receiving money from highly profitable industries which can afford such increases. Also, raising the imposed taxes on private schools and universities, and the free zone factories could contribute to covering the increment expenses. All in all, the decision must be made in the best interest of the citizens.