According to a statement from the Ministry of Finance, the budget for the next fiscal year, which will come into effect on July 1, targets government revenue of around £2.1 trillion and expenditure of around £3.0 trillion, with a increased spending on social programs and support.
Egypt’s finance minister, Mohamed Maait, said the government was aiming for the highest primary surplus (the difference between revenue and expenditure excluding debt interest) of 2.5% of GDP, in order to “cope with force and speed to global challenges”.
In his address to the House of Representatives to review the financial status of the new budget, Maait added that the government will continue its efforts to gradually reduce debt-to-GDP ratios to less than 80 percent by June 2027.
Egypt, which is heavily indebted, is suffering from severe economic difficulties and a strong inflationary wave, with a serious shortage of hard currencies, despite the devaluation of the pound three times in about a year, and it entered into a new agreement with the International Monetary Bank Fund worth $3 billion to help close the external financing gap.
Maait told the parliamentarians: “Our economy is doing well and is able to overcome the current international challenges, and together we will overcome the global crisis as we have overcome previous challenges. We are entering the new fiscal year with an ambitious budget which is more stimulus for growth, production and economic recovery.
Egypt aims to achieve a growth rate of around 4.1% in the next fiscal year, compared to an expected growth rate of 4.2% for the current fiscal year, according to the Egyptian Minister of Planning, Hala Al-Saeed, said today before Parliament.
According to the Finance Ministry statement, allowances for social support and protection have been increased in next year’s budget to “reduce the burden on citizens”. billion for health insurance, medicines and treatment for the incapacitated at public expense, £10.2 billion to support social housing and £28 billion to support and develop exports.
The Minister of Finance said that the Public Treasury is supporting EGP 127 billion in interest rate difference for the initiative to provide financing to support agricultural, industrial and tourism activities. Support productive sectors.
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p class=””>He added that government investment allocations have increased to EGP 587 billion to create new jobs and improve public services provided to citizens, in addition to continuing the implementation of the second phase of the “Decent Life” project. “, explaining that the government aims to increase environmental sustainable development projects to 50% of government investments, by approving a set of incentives and initiatives supporting the green transition and the expansion of renewable energy projects.
He said that the government supports carrying out broad structural reforms to push the private sector to lead economic activity, through the government tenders program, which will be implemented under the government’s ownership policy document. the State, noting that £6 billion has been allocated to reduce electricity prices for industrial activities, and £1.5 billion to bear the cost of property tax for the industrial sector.
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