Finance minister testifies before parliament on new budget

The new Egyptian 2002/2003 budget, with total allocations amounting to 141.6 billion pounds, was drafted to meet the assignments and programs of the government "in a manner which eases the impact of world economic conditions on the sectors of less ability in society."

Finance Minister Midhat Hassanein, in a statement before the People's Assembly yesterday, said that the budget "provides protection for people of limited income does not place on them new burdens and maintains the gains they have realised in the past years."

The new budget, moreover, helps Egyptian economy to keep high rates of performance.

Every effort will be made to encourage businessmen and investors to launch labor-intensive projects and set up large industries.

No new taxes will be levied, the minister said.

The Minister said that private sector's contribution to total investments will rise to more than 60 per cent compared to 20 per cent twenty years ago.

"The Sharm AL Sheikh conference of donor countries in February helped to attract more foreign investments and soft loans to finance projects of the development plan," the Minister of Finance said.

Hassanein asserted that the main feature of this budget is the government's keenness on taming the volume of debts in a way that could ease burdens of debt service. "To maintain this target every party seeking implementing certain projects, has to define the source of finance and methods of repaying this finance," he added.