EGYPT'S PROSPERITY

Nelson Evening Mail, Volume LXXI, 22 June 1937, Page 6

EGYPT'S PROSPERITY

A BALANCED BUDGET With a balanced budget, a sound reserve, a small public debt, a large area of potentially rich land in its possession, and many other undeveloped resources, Egypt’s financial position is more sound than that of many a more powerful nation. The budget for the financial year commencing May, 1937, which was recently introduced to Parliament by the Minister of Finance. Makram Pasha Ebeid, shows healthy situation with a balanced total expenditure of E£36,116,500. an increase of E£963,240 as compared with the previous year. The increased expenditures are provided for mainly by higher customs dues on luxuries and by savings in various departments. The major items in the larger costs are for irrigation and drainage, education, national defence and public health. Contrary to expectation, the officials’ salaries, which constitute about 40 per cent, of the total budget expenditure, are not being reduced, but in this connection tire so-called voluntary contribution of one month’s salary toward the National Defence Fund has to be kept in view. FUND FOR PUBLIC WORKS s The budget is designed to meet current, not extraordinary expenditure. In the latter category must be included projects which Egypt has undertaken to carry out in accordance with the Anglo-Egyptian Tieaty, mainly in connection with military roads, barracks, and equipment. Naturally, the works which have been already commenced ■on a small »cale will be spread over a number of years, but the Minister states ihat he is earmarking E£8,000,000 from the Reserve Fund for this purpose.

This fund, which is well over E£30,000,000, has been built up from savings on previous budgets. It constitutes a record of the steady progress of Egypt during recent years, many of which have been difficult. New taxes are to be introduced after the capitulations question has been settled at Montreux, but there is no valid reasons to believe that such will put the foreigner out of business. Egypt is prosperous, but not so wealthy as to be prepared to drive cne fifth of its wealth, a rough estimate of its foreign investments, out of the country.

Time and again the Government has assured the press that it takes a long view of the situation and will not be stampeded into reckless taxation through ultra-nationalism. According to general opinion, foreigners in the nncf. have not pa’d their share of taxation. The future policy is designed to place all taxation on an equitable basis.