Government Enhances Social Spending Efficiency Through MOU with ESCWA

The Minister of Finance, Mohamed Maait, signed a memorandum of understanding with Rola Dashti, Deputy Secretary-General of the United Nations and Executive Secretary of United Nations Economic and Social Commission for Western Asia (ESCWA), to enhance social spending efficiency.

The agreement aims to measure the efficiency of social spending by providing a database for in-depth studies contributing to the sustainability of financial coverage for vital sectors such as health, education, nutrition, and housing.

This initiative assists decision-makers in monitoring, analyzing, and evaluating spending programs, aligning with the government's overall financial goals.

The government has undertaken various consultations with representatives from ESCWA to optimize the benefits of this tool and develop strategies that align with the general financial objectives.

Additionally, the government continues to enhance its technical capabilities by adopting advanced technological tools to increase spending efficiency for priority social care groups.

Maait stated that Various studies have been conducted with international institutions to improve the social return on investment in critical sectors.

Notable initiatives include increasing wage expenditure from EGP 178.6 bn in June 2014 to EGP470 bn in the current budget, marking a growth of 163%. Furthermore, allocations for social insurance pensions and "Solidarity and Dignity" program have increased from EGP5 bn in 2014/2013 to EGP35.5 bn, reflecting a growth of 614%.

Conflicts with National Social Insurance Authority have been resolved, leading to a payment of EGO202.2 bn for pensions, compared to EGP 29.2 bn in 2014/2013, indicating a 592% increase.

Provisions for education have increased by 19%, health by 14%, and social support and benefits by 48.8% in the current fiscal year budget.

These measures aim to achieve economic fairness and provide a decent life for citizens.