The governorate is the largest of the local units. Governorates in Egypt are divided in different manners based on their areas. Basically Governorates consist of multiple cities. There are governorates with one city such as Cairo, Suez and Port Said. The cities are divided further into districts, then into neighborhoods.

Finances of the Governorates

ARTICLE (35):

Finances of the governorates include the following:

First: Shared finances with all the governorates and comprise the following:

1. The governorate shares in the additional tax on the exports (this tax was cancelled, by virtue of Law No. 187/1986) and imports which fall within its circle; and the law shall define the rate of this tax; while one half of its proceeds shall be allocated for the governorate, and the other half shall be deposited in the balance of common finances.
2. The governorate share in the additional tax on the movable estate tax, and tax on incomes derived from trade and manufacture. One half of the proceeds of this tax shall be allocated for the governorate, and the other half shall be deposited in the balance of common finances. If the central office of an establishment was different from the actual center of its activity, the local popular council of the governorate – in which circle the center of actual activity is located – should be concerned with imposing the additional tax; and this governorate shall retain one half of the proceeds of this tax, and the other half shall be deposited in the balance of common finances.

A resolution shall be issued by the minister concerned with the local government, for the distribution of the proceeds of the common finances on the different governorates.

Second:

Special finances of the governorate, and they comprise the following:

1. One quarter of the receipts of the original tax stated for lands in the governorate; and also one quarter of receipts from the additional tax on lands in the govern orate.
2. Taxes and duties on motorcars, motorcycles, trucks, bicycles, and means of transport licensed from the governorate.
3. Returns of investing the governorate funds, and receipts of the utilities which are managed by it.
4. Taxes and other duties comprising local character which are imposed for the benefit of the governorate.
5. The governmental subsidies.
6. Contributions, donations, and wills, provided the approval of the Prime Minister on accepting what arrive of them from foreign authorities or persons.

The local popular council shall take charge of distributing its designated share to finances in terms (‘a’ and ‘b’) of Second on the local units within the scope of its competence, at the ratio to be stated by itself, observing the situation of each unit and its requirements.

ARTICLE (36):

In each governorate, a special account shall be established for the purposes of lands reclamation on the governorate level, whose finances shall be constituted of the proceeds from the disposal of the reclaimed agricultural lands referred to, in Article (28) of this Law. In addition, a special account shall be established in the governorate for financing economic housing projects at the governorate level; the finances of which are composed of:

1. Proceeds of the disposal of the lands prepared for building, referred to in Article (28) of this Law.
2. Proceeds of subscription in the housing bonds referred to in the Articles (4), (5), and (6) of the Law No.107 for 1976, establishing a fund for economic housing projects.
3. Proceeds of the recompense of use which is to be paid in cases of exemption from elevation registration pursuant to the provisions of law for directing and organizing building works, at the governorate level.
4. Amounts allocated for the purposes of the economic housing in the governorates, in the agreements concluded by the State.
5. Proceeds of rents and premiums of possessing the building units owned by the governorate.
6. Loans.
7. Subsidies, contributions, and wills.
8. Proceeds of investing the monies of this account, rent value of the compensatory houses which were erected in the three towns of the Canal, and premiums of possessing such houses.
9. Proceeds of the fines to be decided according to the first paragraph of Article (21) of the law for directing and organizing building works No. 106 for 1976, and this shall be on the governorate level.
10. The finances of both of the referred to accounts are considered of the governorate’s own finances, and the surplus of each account shall be carried forward, at the end, of each fiscal year, to the budget of the next year.

Rules and management of both of these accounts, and methods of payment from them shall be organized by a decree from the Cabinet; also, by a decree from the Cabinet in agreement with the Minister of Economy, the ratio–which the insurance companies are bound to subscribe within the housing bonds–shall be specified.

ARTICLE (37):

The local popular council of the governorate shall establish an account for services and local development whose finances shall be composed of:

1. The fees imposed by the local popular council of the governorate in favour of this account.
2. Profits of the productive projects financed by the said account.
3. The contributions, donations, and wills which the local popular council of the governorate approves to allocate them for this account.
4. 50% of the increase which shall be realized in the governorate local finances over the allocation estimated in the budget.

ARTICLE (38):

Revenues of the account of services and development in the governorate, shall be employed – according to what shall be resolved by the local popular council of the governorate – in the following purposes:

1. Financing the productive projects, and local services according to a local plan to be distributed, and approved within the outline of the State general plan.
2. Completing the projects mentioned in the general plan, which the financial credits included for them in the governorate budget are not sufficient for their completion, and for establishing the projects which are erected by the self-efforts.
3. Raising the standard of performance for the local public services.
4. Payment on vital urgent public services.

A decree shall be issued by the concerned governor for organizing the account of services and development. The funds of this account shall be treated with the same treatment as the public funds, and particularly what is connected with the application of the penal law, and with respect to collection, payment and control; and the surplus of this account shall not revert to the public treasury.