A Report On Egypts Draft Budget Economics Essay

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This paper attempts to analyse the societal facets of Egypt ‘s bill of exchange budget 2009/10 and 2008/2009 Fiscal Year ( FY ) with specific mention to wellness and instruction. The paper will compare how authorities outgo in wellness and instruction has increased while there is a decrease in subsidy. Prior to decision and recommendation, the essay will contract down its range to analyse wellness sector.

In the FY 2009/2010 ‘s budget, The Arab Republic of Egypt has allocated about LE. 170.2 billion ( 47.6 % of the entire budget of LE. 349.9 billion ) for funding societal facets such as instruction, wellness, subsidy, societal security, back uping and beef uping pension system, services for Youth, civilization and Religious personal businesss, and others. These facets of societal model harmonizing to Ministry of Finance are intended to supply basic human demands, promote economic development and better the general criterion of life ( MOF ) . Besides, the budget is meant to advance societal justness peculiarly to the people in Upper Egypt and Sinai. Generally, the sum of money allocated for societal facets for the twelvemonth 2009/2010 is has decreased by 21.8 % compared to budget of FY 2008/2009 ( Ibid ) .

Apart from societal security, back uping and beef uping pension system, services for Youth, civilization and Religious personal businesss, and other societal model which the budget besides tackled, the constituents of FY 2009/2010 and 2008/2009 in instruction, wellness and Subsidies are shown in the tabular array 1 below.

The tabular array 1 below shows the appropriation for societal facets of FY 2009/2010 budget ( LE170.2 ) .

( LE. Million )


Draft Budget 2009/2010














Beginning:Adopted from Ministry of Finance Egypt.

Given the above statistics, it follows that there is 17.78 % lessening in societal disbursement ( instruction, wellness and subsidy ) for FY 2010. Although the subsidy sector has declined by 37.7 % , however, there is a important addition ; therefore: 15 % in the country of instruction and wellness increased by 17.7 % . Surely, as indicated on the FY 2009/2010 national budget, the authorities ‘s mark is to accomplish basic instruction or pre-university and university on the land that instruction is an indispensable input for production and growing ( MOF ) .

The addition in wellness budget constitutes a larger per centum compared to instruction because health care is one of the combustion policy reform issues in Egypt today. Hence, the authorities embarks on bettering the conditions of physicians and nurses, and pupils. For illustration, LE. 3772.7 million has been allocated for Health Insurance Authority, and LE. 405 million for subsidising and medical specialties and pupils ( MOF ) . Furthermore, harmonizing to Q209 Pharmaceutical and Healthcare Report for Egypt, drug disbursement increased from US $ 2.34bn in 2008 to US $ 4.10bn by 2013, picturing compound one-year growing rate ( CAGR ) of 11.8 % over the five twelvemonth period ( Research and Market ) . With the wellness reform policy of 2009, it is argued that the per capita outgo on medical specialties is expected to be US $ 49.40 by 2013. This means that passing on public wellness would increase marginally from 40.3 % to 45.6 % of the entire authorities outgo ( Ibid ) . Consequently, the wellness attention insurance strategy would positively lend to free wellness attention or by bear downing lower costs.

Since there is increasing demand for wellness attention reform in Egypt today, it is imperative to further increased public wellness outgo well in order to run into the functionary policy aims of the authorities. This could be done by spread outing wellness attention insurance and tax-based support. It is besides of import to force for policies that will tackle equity in distribution of resources, addition efficiency and equity in wellness sectors in Egypt. But, this requires a corporate attack – therefore ; the authorities needs to join forces with different agents in put to deathing its action programs.

In a nutshell, it is the exclusive duty of the authorities and its bureaus to suitably finance and supply efficient and just wellness attention services, and instruction for its citizens in order to run into today ‘s socio-economic challenges in Egypt. Hence, every community, governmental and/or non-governmental organisations, policy shapers and the authorities must recognize that wellness attention is a basic human right, and instruction is the input for development and production.


Ministry of Finance. “ Analytic Statement of the State General Budget Draft for FY 2009/2010 ” , May 2009. www.mof.gov.eg/english/statistics, accessed 14th February 2010

Research and Market. “ Egypt Pharmaceuticals and Healthcare Report Q2 2009. ” April 2009, hypertext transfer protocol: //www.reportbuyer.com/pharma_healthcare/country_reports_pharmaceutical/egypt_pharmaceuticals_healthcare_report_q2_2009.html Accessed on 19th February 2010.