Egypt Adopted Rationalize Public Expenditure , to Tighten Control over Payments to State Employees

Minister of Finance, Mr. Amr Al-Garhy, issued Circular no. 3, 2018, addressing the State's mechanism towards shifting to the employment of electronic, financial and accounting systems.

The said Circular shall be enforced pursuant to the presidential decree no.89, 2017 mandating the establishment of the National Council of Payments and under the Prime Minister's two decisions: no. 123 for 2017 and 2374 for 2017.

Within the framework of the Ministry of Finance's relevant orders, all the State's administrative entities, local administrative units, service and economic public authorities shall pay out employees' salaries and all the like as of the 25th up till the 28th of each month.

Consequently, all arrears reported after such time interval of each month shall be paid on the 9th and 10th of the following month.

Apart from salaries and same disbursements, any other payments shall be executed on the 9th and 10th of each month, whereas their arrears shall be expensed only during the same time interval of salary payment in each month, the Circular mandated.

Notwithstanding the foregoing, payments related to enforceable court judgments as well as to end of service provisions subject to article (69) of Civil Service Law no.81, 2016, shall be executed upon their delivery to the relevant accounting units. Provided that the date of payment

disbursements is coincided with national holidays or weekend days off, transactions shall be executed the preceding day thereof.

The following measures are mandated under the Ministry's said circular to ensure that all employees' due payments are executed in the aforementioned specified dates:

Subject to article 18 of the budget and accounts financial regulation, departments of personal affairs shall submit payroll registers of the ongoing month to the accounts departments at least 12 days prior to the exact executing date of bank-transferred payments and at least 10 day in advance for other payments.

Schedule dates of banking clearance sessions and national holidays shall be taken into consideration when submitting payroll registers.

Electronic payment orders for ATM-transferred dues shall be executable after 5 working days of having them signed and after 2 working days for other payments.

The Ministry of Finance calls on financial officers at the State administrative body, municipal administrative units, service and economic public authorities and other public authorities, as well as on governorate financial directors, financial controllers at ministries and public authorities and account managers and their agents, to show complete abidance by provisions of its Circular no. 3, 2018, where any violating parties thereof shall be held accountable.

In the same context, the Ministry of Finance has lately issued the two circulars no. 85 for 2016 and 5 for 2017 entailing the necessary measures adopted to rationalize public expenditure and to tighten control over payments made to State employees.

Such measures included effectuating automated control programs and linking employees' payable dues with electronic payment and collecting systems.