FILE - Minister of Finance Mohamed Ma'it
CAIRO – 30 March 2020: Egypt’s draft budget of 2020/2021 fiscal year is the biggest in the country’s history with expenses of 1.71 trillion and revenues of LE 1.3 trillion, according to Minister of Finance Mohamed Ma’it.
Ma’it clarified Monday that 20/21 draft budget reflects the directions of the political leadership to improve the standard of living of citizens through effective initiatives that contribute to improving the quality of public services, and strengthening the pillars of social protection, in a manner that ensures that all groups of society benefit from development returns.
“Wages allocate LE 335 billion in the new budget with an increase of LE 34 billion or 11.3 percent, compared to current fiscal year,” the minister said, clarifying that the new budget aims to improve the wages of workers in the country and improve their conditions.
The increase in wages comes to pay periodic bonuses by 7 percent of the wages for those who are subject to civil service law and 12 percent of the basic salary for those who are not subject to civil service law, with a minimum of LE 75, and an additional incentive ranging from LE 150 to LE 375.
“Taking into account President Abdel Fatah el-Sisi directions of raising the allowance for medical professions by 75 percent, which will be disbursed to doctors and nursing agencies, at a value of LE 2.25 billion,” Ma’it added.
According to Ma’it, allocations for goods and services amounted to LE 100.2 billion, while subsidies accounted for LE 326.3 billion; including: LE 19 billion for “social security, and takaful and karama” pensions, and LE 170 billion pounds for the General Authority for Insurance and Pensions, to pay the second installment of the state’s public treasury obligations to the authority, 14% special allowance to pensioners, and increasing the allocations for social housing support to LE 5.7 billion, with a growth rate of 70 percent, in addition to increasing the financial allocations established to support exports to LE 7 billion.
The minister also pointed out that LE 4 billion has been allocated to raise the tax exemption limit from LE 8,000 to LE 15,000 and reduce the job-earning tax brackets for all low- and middle-income groups.
Health allocations rise LE 23.4 billion to LE 95.7 billion in 20/21 draft budget, and education allocated LE 46.7 billion and LE 7.8 billion went for scientific research.
He noted that the government aims to bring down the total deficit of the gross domestic product (GDP) to 6.3 percent, achieve a primary surplus of 2 percent, and increase government investments to LE 280.7 billion pounds, or 64.3 percent over the current fiscal year, thus contributing to economic activity, and continuing to improve infrastructure and create an investment-stimulating environment.
The minister said that the draft of the state budget for the new fiscal year reflects the state’s keenness to move forward in completing the process of economic and social reform and strive to reduce debt and deficit rates of GDP, and to strengthen the structure of the national economy by pushing productive activities, stimulating industry, and expanding the export base. He also referred to the decrease in the value of the debt service benefits from the current fiscal year.
The draft budget of 20/21 depended on the average exchange rate prevailing in the market during the period from January 1 to the end of March 2020, as well as the price of a barrel of oil at $61.
On March 26, Egypt’s cabinet, headed by Prime Minister Mustafa Madbouli, approved Thursday the draft budget for the new fiscal year 2020/2021.
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.