Switching to e-budgeting helps Egypt tackle internal and external challenges: Ministry of Finance

Ehab Abu Eish, Deputy Finance Minister of the Public Treasury, said the ministry has laid the foundation for digital transformation in its overall concept, which includes reengineering, simplifying and automating procedures, in a way that is part of the modernization of the legislative structure and the development of the working environment.

This has helped to maximize the economy, improve governance of the revenue and expenditure system, maintain a secure economic trajectory and meet development needs.

Abu Eish said that there is a new administrative structure for the Ministry of Finance, which helps to increase the efficiency of real-time public finance management, and the optimal use of the state’s public resources, explaining that the business community has helped us a lot in modernizing and mechanizing tax and customs systems.

He added that the projects to digitize the tax system have made us better able to integrate the informal economy into the formal economy and achieve tax justice, without weighing down citizens.

He explained that in 2021, the electronic income tax declaration system saw an increase of 11% compared to 2020, and the number of registrants in the electronic value-added declaration system doubled. compared to June 2018, and the number of value added declarations increased by 54% compared to June 2018. VAT receipts also increased by 27% in the last financial year compared to fiscal year 2019/20, and the income from value added declarations in the first four months of the current financial year increased by 19.7%.

According to Abu Aish, around 15 million electronic invoices are issued per month, and so far 5,000 companies have joined the electronic invoicing system. It is expected to reach 9,000 businesses by mid-December 2021. In addition, 14 income tax and VAT offices will be merged into 10 offices by December 26.

He explained that the electronic invoicing system will cover retailers by next April. Mandatory registration will be done gradually, starting with 600 taxpayers, which would strengthen the governance of the tax system, through the optimal use of technological solutions in the real-time monitoring of commercial transactions between financiers and consumers, in a way that contributes to tax and competitive fairness.

He added that over 60,000 foreign exporters have been registered on the CargoX platform and 26,000 Egyptian importers have been registered on the Advance Cargo Information (ACI) system for pre-registration of shipments, with over 164,000 ACIDs. issued to date. In addition, 13 logistics centers have been created and cover 96% of Egyptian imports. All customs points have been electronically linked to the ACI platform, in a way that contributes to the transition from a paper-based work environment to digital, and enhances the improvement of Egypt’s classification in 3 Important international indicators: Global Competitiveness, Conduct of Business and Macroeconomic Environment.

He pointed out that since May 2019, more than 3 million electronic tax and customs collection operations, worth over EGP 1 billion and a growth rate of 10%, and over 23 million collection process in government machines, worth more than EGP. 128 billion with a growth rate of over 100%, was achieved during the period between fiscal year 2019/20 and fiscal year 2020/21.

Ramy Youssef, Deputy Minister of Finance for Fiscal Policy and Development, confirmed that the coming period will see the publication of a simplified directive that clarifies the correct path for paying taxes for anyone who sells a product or service , works in advertising, creates or promotes content through social networks.

Walid Abdullah, head of the central treasury budget department in the finance ministry and director of the government financial information management system (GFMIS) project in the finance ministry, said we aim to apply the GFMIS system to agencies. on an experimental basis during the period from March 2022 to the end of next June, with a view to its implementation in the budget of the following year to connect all government agencies electronically. This helps to create a strong public financial management system by integrating, controlling and computerizing all government financial operations, starting with budget preparation, execution and control. This helps to achieve financial discipline and to use state resources effectively and efficiently.

He added that the application of the GFMIS system in budgetary entities with its accounting units, which amounted to approximately 2,637 units of account, and the attachment to the electronic payment and collection system GPS, and to the cash account unified TSA, helped to close the final accounts of the budget closed on the same day at the end of the year, and for the budget to function from the first day of the new fiscal year, in a way that leads to the achievement of transparency and quality of execution, whereby budget- financed entities are able to meet the requirements of their activities and approved plans in accordance with specified financial allocations.

© 2021 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

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