Ebeid addresses people's assembly on policy statement

Prime minister Atef Ebeid said that the budget for fiscal year 2000 -2001, which amounts to LE 111 billion, will be spent entirely on subsidies, services, care for people of limited income and investment to provide more services, one-third has been allocated to wages and pensions and two-thirds for services.

The budget is based on self-resources and a very little amount of grants, estimated at not more than one per cent.

In a statement he delivered before the people's assembly Saturday in reply to debates of MPs on the government's policy statement, Ebeid said that borrowing will be made only to finance projects the feasibility of which has been established.

"Projects where conclusive evidence has shown that they were not feasible have been stopped," Ebeid said.

"The situation has been firmly dealt with and sources of foreign currency are expected to rise and the assets of foreign currency at the Central Bank of Egypt have increased," Ebeid said.

Ebeid said that the government is moving in all directions to increase sources of foreign currency in which there has been increasing flow in the recent period.

Debates of MPs were objective, fair and constructive and dealt with issues of concern to the nation: its security, unity, stability, development, protecting its wealth, increasing the nation's friends and providing a decisive deterrent to its enemies, strengthening its institutions, respect of the independence of the judiciary, guaranteeing free choice and constant assertion of the nation's values, ideals and ethics," Ebeid added.

"Freedom has been expanded to include free operation by 16 parties ( a number unknown by Egypt since democracy was introduced) people enjoy reading daily 500 newspapers and magazines which represent the view and the other view. They illuminate our course, alert us to points of weakness and present useful information," added.

Ebeid said also that the opposition showed concern and it is its right to show concern which we understand, but which was certainly unjustified, as regards the future of democratic practice. Practice of political rights has spread and is ensured. Supervision of the judiciary on elections is coming and will be decisive.

Ebeid made a quick review of what has been accomplished and what is being carried out to meet the needs of the nation and citizens.

National economy is the mainstay of safety and security, the source of aspired improvement in the standard of living of citizens, and the only source of planned, and carried out development of services and public utilities.

The foundations of economy are: the budget, sources and use of foreign currency, internal and external debts, savings. We have taken care to spend only on what is useful and the feasibility of which has been established.

It was possible to bring the budget deficit under control in spite of difficult circumstances, the many demands and the various commitments.

"We shall proudly represent to your esteemed Assembly next month the budget of the next fiscal year and you will find that we have observed what you called for guiding expenditure and that expenditure be fore social development, care for limited income people, improvement of services and pushing forward development at high rates," Dr. Ebeid said.

Assets of the Central Bank are increasing week by week. This was supported by policies which we adopted and shall continue to adopt: First to rationalize government expenditure of foreign currency.

The market is receiving flow of oil return which will increase as a result of expediting projects to export natural gas after it has been established that we have a surplus.

The market is witnessing an increase in sources of foreign currency after it has been shown to the world that the sons of Egypt are committed, both at the religious and ethical levels, to protect and welcome guests.

Egyptians abroad are sending more remittance. We proudly note the attitudes of a number of European and American countries and Canada which issued statements saying that they appreciate the efficiency of Egyptians.

Market stability is being bolstered by an imperative need to increase, non-petroleum exports. We have at least 50 agricultural and industrial commodities which can have a place in foreign markets. The next few months will witness a tangible improvement in our exports.

We are willing to open our files and provide information. Reports of world financial institutions affirm that Egypt is the least country in the world exposed to danger as a result of external debts.

The volume of external debt up to yesterday amounted to $28.2 billion which are to be repaid over 26 years. Low annual interest is collected on these debts at an average of 3.6 per cent (interest on similar loans in dollars amounts to 7 per cent at least.

We pay $1200 million, representing only 9 per cent of our resources of foreign currency, annually to pay due installments.

The government's internal debt is LE 147.1 billion , borrowing was made by successive governments to finance development.

Internal debt represents 40.2 per cent of gross domestic product (GDP) according to international norms and criteria, this is a quite safe percentage and is insured by confirmed property of economic and services institutions the book value of which is almost $320 billion dollars.

I wish to make it clear that restructuring has nothing to do with expenditure on services and providing care for limited income people. It has nothing to do with subsidy which we provide, through these institutions, in the shape of reduced rates of electricity, water and transport. This subsidy exists and shall continue.

We have completed arrangements to fill 111,0000 jobs. They are being employed to meet shortages in the number of preachers, physicians and assistant technicians at utilities. 40,000 more posts will be filled by June 30, 2000.

We have filled 7000 posts in which top graduates were appointed to benefit from them at leadership positions, research centers and universities.

Training and rehabilitation centers of the oil and electricity sectors are being operated. About 15,000 young people are being qualified to work in the field of repair of apparatus and crafts. After training, they will be helped to start small projects to be provided by the oil and electricity ministries.

The ministry of communications has agreed with 10 major world companies working in the field of computers to train youth to use electronic computers and information systems. A program being carried out will absorb 50,000 young people annually.

The approved budget of the Social Fund for Development (SFD) will be entirely devoted to providing 180,000 job opportunities.

On the course of overall administrative development, we have completed preparations to carry out a program to prepare readerships of the second and third generations.

This program will provide, in the coming four years, leaders capable of continuing to the march of progress and development.

Our investments in the field of national media shall continue so that it may continue to be strong and carry the image of Egypt using the technology of the age and prepare Egypt to be the larger base of distinguished production.

We affirm our full responsibility to provide immunity, free of charge, for our children against all diseases which threaten their lives and their future ability to produce.

Priority will be given to projects which are being carried out in which 50 per cent of the work has been completed in all governorates.

Priority will be given to projects of drinking water, sanitary drainage, roads, schools and health units.

Development projects will be offered for the coming 10 years the march and the gains of development are safeguarded by a heroic army in the achievements of which we take pride and in the strength of which we believe.

Our strong armed forces are the shield of the nation to safeguard peace against the enemies of peace. We are committed to providing them with the resources they define and their needs.