FILE: Cabinet’s meeting on Monday April 8, 2019
CAIRO – 26 March 2020: Egypt’s cabinet, headed by Prime Minister Mostafa Madbouli, approved Thursday the draft budget for the new fiscal year 2020/2021.
Minister of Finance Mohamed Ma’it said that the new fiscal year 2020/2021 draft budget aims to maintain the greatest degree of financial stability while supporting economic activity by achieving a reduction of the total deficit to 6.3 percent of gross domestic product (GDP) and achieving a primary surplus that allows the path of reducing the debt of the budget.
“The draft budget targets to support, and stimulate economic activity, growth and employment, especially the productive sectors, in conjunction with the continued efforts to improve the quality of infrastructure while ensuring that everyone benefits from this improvement,” he added.
The Minister added that the new draft budget targets specific initiatives and measures that improve the living conditions of citizens, especially the middle class, as well as a positive contribution to strengthening human development activities and areas in the fields of health and education, and the continued expansion of proper pricing of goods and services, in a way that guarantees the efficient allocation of resources and uses by all parties, as well as targeting the expansion of the tax base and maximizing the return on state assets by increasing the surpluses transferred to the public treasury.
According to Ma’it, Egypt's 2020/2021 draft budget aims to reduce public debt of GDP to 82.7 percent by end of June 2021, and to achieve a primary surplus of 2 percent during the coming fiscal year.
“Egypt's Ministry of Finance is intensifying its efforts to continue the growth of budget revenues at rates that exceed the rate of expenditures,” Ma’it stated, adding that also aims to increase the section of wages and compensation in 20/21 budget to accelerate the income of workers.
Ma’it clarified that Egypt's new budget targets an annual wage growth rate that exceeds the inflation target.
Moreover, social measures package in Egypt's new budget includes allocations for delivering natural gas services to homes for 1.2 million housing units.
It also includes allocating about LE 36 billion to initiatives to support the sectors of health, pre-university education and social solidarity, according to Ma'it.
“Egypt's 20/21 budget also contains allocations for the gradual implementation of the comprehensive health insurance system.”
Finance Minister clarified that allocations for state-funded medical treatment in Egypt's new draft budget for 20/21 have increased.
“Egypt's new budget will work to ensure the continuous increase in allocations for public investments funded by the Treasury in a manner that exceeds any other increases of public expenditures,” Ma'it stated, adding that exports allocations in 20/21 draft budget hiked LE1 billion, compared to FY of 2019/20