Minister of Finance
This came during a meeting with Fahd Al Turki, Director General and Chairman of the Board of Directors of the Arab Monetary Fund (AMF) on the sidelines of World Bank and IMF spring meetings.
Minister Maait emphasized that the initiative has resulted in a significant influx of remittances from Egyptians abroad, amounting to $750 million.
This consolidation involves merging the budgets of all 59 economic entities within the state budget Itself, as approved by Members of Parliament in the previous month.
737 field campaigns involving 50,000 establishments in Cairo and other areas were conducted and showed a compliance rate of 66 percent for income tax registration and 49 percent for value-added tax registration. As a result of these campaigns, tax dues totaling LE 1.6 billion have been paid instantly.
Maait further explained that the state budget aims to achieve an initial surplus of 3.5 percent and gradually reduce the overall deficit to 6 percent of the GDP in the medium term.
In terms of support, Egypt has earmarked LE 596 billion, including over LE 134 billion for food supplies and more than LE 147 billion to support petroleum products.
In another interview with the same publication, Maait confirmed that Egypt is set to receive an additional $3 billion from the World Bank in the coming period.
Speaking at a press conference in Cairo on Sunday, Maait also disclosed that the primary surplus for the same period amounted to LE 193 billion, a rise from the LE 41.8 billion reported a year ago.
This step comes with the aim of helping to increase foreign exchange flows, and providing a portion of the foreign financing required to cover the needs of the Egyptian economy, in addition to continuing to achieve a primary surplus and growth in tax revenues.
Maait emphasized Egypt’s keenness for continuous coordination with the International Monetary Fund to maximize avenues of mutual cooperation that help achieve development, financial, and economic objectives.
According to the finance minister, Egypt seeks to improve the ratio by expanding automated tax solutions, specifically targeting the integration of the informal economy into the formal economy
Maait explained that Egypt is working closely with the AIIB, a multilateral global bank, to establish cross-border developmental partnerships, primarily led by the private sector.
As a founding member of the AIIB, Egypt aims to fortify connections between Africa and Asia and realize its sustainable development goals with the overall goal of improving the livelihoods of African citizens, Maait stated
Maait highlighted the state’s efforts to start paying higher wages and pensions to beneficiaries starting April.
Maait elaborated that Egypt’s budget deficit recorded its highest rate during the period between 1980 to 1985, reaching 13.8 percent, before it started to decline to range from 4.4 percent to 6 percent.
This will take place by engaging new cities and governorates to the initiative, Maait explained, noting that citizens of Upper Egypt’s Luxor and Aswan have been allowed to join the initiative.
The minister, meanwhile, said that the political leadership is keen on stimulating private sector activity, especially that Egypt has an advanced infrastructure and ability to accommodate investment expansion in the various sectors.
“Egypt is looking forward to doubling Japanese investments in Egypt, in order to consolidate the partnership between the two friendly countries, and in line with the bilateral cooperation relations," Maait added.
Maait added that it also aims to increase the proportion of its contributions from the total implemented investments to 65 percent, and attract foreign direct investments of $10 billion annually over the next four years.
In a statement on Monday, he said efforts are underway to magnify state's capabilities for the optimal handling of the repercussions of the current international economic crisis.
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