Poverty, unemployment and debts.. The Egyptian economy is in the “rock bottom” because of Sisi’s bills

Observing the statements and statements of the coup government about the conditions of the Egyptian economy, he discovers that this government has what can be called “schizophrenia.” It declares without equivocation and without shame that the Egyptian economy sits on the throne of the growth map in the world, despite the negative repercussions of the Corona virus pandemic.

On the other hand, the citizen experiences cups of misery, poverty, marginalization and torture, and about 70 million Egyptians live below the poverty line, and the past years, since Abdel Fattah al-Sisi’s coup against the first elected civilian president in Egyptian history, the martyr Mohamed Morsi, have witnessed dozens of promises to improve the country’s economic situation In 2015, which Sisi called “the year of prosperity,” and with the alleged failure to achieve prosperity, Sisi demanded the people to be patient for two years in 2016. This promise was postponed to 2017 and then asked for an additional 6 months, and so on in 2018 and 2019, until he reached the year 2020. When Sisi claimed that Egypt will become by the end of June of this year a “purely second need.”

These false promises did not move the stagnant water in the frozen economy river, so the situation worsened year after year, in light of the continuity of the policies followed, which the country is expected to pay for for the coming decades.

The following report reviews a package of indicators, most notably the increase in unemployment rates, poverty rates, the decline in savings, the exacerbation of debts, the wave of subsidy cancellation and the draining of citizen’s pockets, which reveals the reality of the economic situation in Egypt, as well as the endless lies of Sisi.

external debt

The figures issued by the financial authorities reveal a darker picture, led by the huge boom in the volume of external debt, which increased by 193% during the Sisi years. In fact, Egypt acquired 34% of the total debt of the Middle East and North Africa region during 2019, according to a report by the World Bank. Official statistics indicate that the external debt reached 137.9 billion dollars until the end of last June, with the addition of 3 billion dollars in the value of international bonds last September, and the same as a Saudi deposit in the Central Bank of Egypt during last October, in addition to 40 billion dollars in the value of the interests of this debt, which means The actual number of external debt with its interests may reach 203 billion dollars.

This unprecedented volume of debt consumed the bulk of the annual budget allocated to meet the needs of the people and spend on them, as data from the Ministry of Finance of the coup showed that debt interests and installments consumed more than 80% of the state’s public revenues during the last fiscal year.

Where the coup government was required at the end of last year to pay about $12.062 billion, representing short-term foreign debts, including about $11.958 billion as the principal debt, in addition to interest at about $103.76 million. To pay the tax borrowing policies that you have followed over the past years.

savings

The second indicator indicates that the savings of Egyptians during the era of Sisi declined significantly. During the period 2014-2020, the savings ratio of the domestic product did not exceed 10% at best, with the exception of one year, the fiscal year 2018-2019, according to the data of the monthly financial report of the Ministry of Finance of the coup in June 2021.

It is noteworthy that the savings rates in the period 2005-2010 during the era of the ousted Mubarak were not less than 12.6%, and in some cases reached more than 17% of the GDP, which is higher than the best years of Sisi’s coup, which did not exceed 10%, which indicates Entry level of citizens during that period.

poverty

Poverty indicators hit allegations of coup statements, as the poverty rate in Egypt reached 29.7% in the fiscal year 2019-2020, and despite its decline from the rate of the fiscal year 2018-2019, where it was 32.5%, this alleged improvement did not appear in any way in the savings rates. .

Approaching the 30% point as an indicator of poverty puts 30 million citizens under the level of a dollar per day, knowing that the poverty rates before 2014 did not exceed 25%, compared to what they were in 2000 when they did not exceed 16.7%.

This is in terms of the coup data. As for the World Bank, it confirmed in official data that 60% of the Egyptian people live below the poverty line, and the Corona pandemic has added to these 12 million others, which means that the total Egyptians living below the poverty line at the time of the coup has It reached 72 million.

Citizens’ pockets

These catastrophic indicators were reflected on the citizens’ pockets, as they emptied them of the money they contained, whether liquid or frozen. From the first moment of Sisi’s coup, his successive governments took from the citizen’s pocket their first resource to pay the tax of the borrowing policies they followed over the past years.

It suffices to determine the amount of money collected from citizens by comparing the rate of tax revenue before Sisi’s coup and its percentage today, as tax revenues rose from 305.9 billion pounds in 2015 to 983 billion pounds in the 2021-2022 budget, which means an increase in revenues by about 678 billion pounds. It constitutes more than 90% of the country’s national income.

That big jump in taxes was achieved through the prescription provided by the International Monetary Fund, which depends on the gradual abolition of subsidies to zero, accompanied by successive waves of price increases and the imposition of fees and material burdens, which had a disastrous impact on inflation rates and the spread of unemployment and the abandonment of the vast majority of people Citizens for the necessities of normal life.

compulsory fee

The draining of citizens’ pockets did not stop at raising the price of services and goods only, but rather the people’s competition in their private properties, which appeared with some new laws, most notably the imposition of compulsory fees on real estate in what is known as building reconciliations, claiming that they were not licensed despite being recognized for years by providing them with public utilities from Water, electricity, and annual revenues. Official statistics reveal that the coup government collected at the end of last June 18 billion pounds under the item of reconciliations.

While Sisi raises the slogan of participatory investment and encourages the private sector, which employs the largest proportion of the workforce, the army dominates the civil economy through the establishment of economic entities in various activities, or the acquisition of the Ministry of Military Production in the field of supplies and implementation of various projects within ministries and public institutions, which It removed the private sector from benefiting from the fruits of economic growth, and pushed millions of young people into the unemployment queue, bearing in mind the confidentiality of data related to the military economic system, whose correct numbers cannot be viewed by any party.


Source: بوابة الحرية والعدالة by fj-p.com.

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