Daily News Egypt

Amendments to bidding laws aim to reduce government expenses: finance minister - Daily News Egypt

Advertising Area



Advertising Area



Amendments to bidding laws aim to reduce government expenses: finance minister

The recent amendments aim to curb government spending and promote economic development, says El-Garhy


In an effort to reduce the pressure on the 2016/2017 budget, the Ministry of Finance has amended tender and biding laws in order to have more control over government spending and minimise expenditures.

These changes are aligned with the economic state Egypt is currently facing, said Finance Minister Amr El-Garhy in a Saturday press release.

The changes will have a positive effect on the government’s plans for development as well as aims to achieve transparency standards that provide equal opportunities to everyone and promote freedom of competition, said El-Garhy.

El-Garhy explained that the amendment would also allow administrative bodies to rent vehicles rather than buy them, part of one avenue that would cut spending.

The Finance Ministry claims that government entities do not always have the human resources needed to operate such vehicles efficiently, and management and storage of these vehicles poses a problem, making renting a viable option.

A new amendment also would increase the minimum bidding amount for local businesses in the business sector in order to cover for the devaluation of the Egyptian pound. The amendment would also force administrative bodies to allocate 10% of its purchases towards small businesses, El-Garhy added.

El-Garhy said that transparency is valued by the government, as is demonstrated by these new amendments. The government’s administrative body will disclose all of its purchasing activities and operations through the government’s online portal, with some exceptions made for purchases that should not be disclosed to the public. The press release did not specify what these purchases may be.

The government’s administrative body will also be required to advertise tender offers in  newspapers published in Egypt, which would allow everyone the option to bid.

The administrative body is now also required to assess offers that have not yet been agreed upon to see if the pricing is suitable, said El-Garhy.

The cabinet also now has the ability to grant permission for projects to both Egyptian citizens and international residents as long as an investment plan for the project has been submitted. This move would aim to improve economic sustainability and development, added the press release.

A new article has also been updated that would require administrative authorities to estimate their needs and create an annual plan that includes all of the expenses needed during the coming year. This should be completed three months before the start of the next fiscal year.

 

Advertising Area


https://wwww.dailynewssegypt.com/2016/07/23/amendments-bidding-laws-aim-reduce-government-expenses-finance-minister/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe