REPORT

BY

SIR EVELYN BARING, SIR R. E. WELBY, SIR C. RIVERS

WILSON, AND SIR J. CARMICHAEL,

ON THE

FINANCIAL SITUATION OF EGYPT,

DATED JUNE 28, 1884.

Presented to both Houses of Parliament by Command of Her Majesty.
1884.

LONDON:

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Administrative and Financial Services in the Provinces, Governorships, and Muni

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APPENDICES.

Appendix No. 1 (Statement A).-Comparative Statement of Budgets of Administrative
Expenditure for the Years 1880 and 1884, together with the Budget proposed by
the Committee

Appendix No. 2.-Statement showing the charges upon the Egyptian Revenues on
December 31, 1883, on account of debt of all descriptions

Appendix No. 3.-Estimate of Revenue

Appendix No. 4.-Memorandum showing the proposals made by the Egyptian Government as regards the pensions to be granted to officers and men belonging to the Soudan army..

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Report by Sir Evelyn Baring, Sir R. E. Welby, Sir C. Rivers
Wilson, and Sir J. Carmichael on the Financial Situation of
Egypt.

London, June 28, 1884.

Sir,
WE have the honour to submit our Report on the financial situation of the
Egyptian Government.

ADMINISTRATIVE EXPENDITURE.

The first question to which we directed our attention was the amount for which provision should be made in the estimates for the administrative expenses of the Government. Statement (A), Appendix No. 1, p. 56, annexed to this Report shows (1) the estimated expenditure in 1880, being the estimate upon which the Law of Liquidation was framed; (2) the expenditure of 1884 according to estimates framed and accepted by the Egyptian Government; (3) the expenditure which we propose as the basis of a new financial settlement.

In fixing the administrative expenditure we have endeavoured to arrive at amounts which we consider may be taken as the normal standard in ordinary times. The expenditure during the current year will probably be in excess of these amounts. We shall revert to this subject later when we come to dealing with the financial situation of the immediate future.

The expenditure under most heads was increased during the short period of prosperity which ensued immediately after the Law of Liquidation came into force. This increase was in a great measure due to a large increase in the establishments of the different Departments. In 1880, the total number of employés of all descriptions, and of "gens de service" (servants), was 14,254. In 1881, this number was increased to 15,966; in 1882, to 17,363; and, in 1883, to 17,490. The total increase was, therefore, 3,136 persons, or nearly 20 per cent., in four years.* During the same period the charge on account of pensions shows an increase of from £ E. 208,000, in 1880, to £ E. 325,000, in 1883, or £ E. 117,000 a-year. Under present circumstances we considered that it was imperative to examine fully into this question, with a view, if possible, to bringing down the estimates to the amounts at which they stood in 1880. We ought to observe that the estimates of expenditure for 1884, which were, in the first instance, framed by the Egyptian Government, were largely in excess of the amounts given in column 2 of Statement (A). At the commencement of this year, however, a Committee sat at Cairo, composed of the Minister of Finance, as President, and of Mr. Vincent, Blum Pasha, Mr. Fitzgerald, and M. Mazuc, as members, which went very carefully into the details of the Budget. All the proposals of the Committee were not accepted by the Egyptian Government. At the same time, the result of appointing the Committee was to effect considerable reductions. We acknowledge the very valuable assistance we have received from the three consecutive Reports which were framed by this Committee.

Before entering into the details of our subject, we wish to observe that the Egyptian Ministry is at present composed of five Members, the departmental work being distributed in the following manner :

These figures do not include the establishments under the head of Police, Firemen, Railways, Telegraphs, and Port of Alexandria.

The Right Honourable

B.