Egypt's revenues, growth rate to be affected by COVID-19 pandemic

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Tue, 05 May 2020 - 03:24 GMT

FILE PHOTO: Egypt's Finance Minister Mohamed Maait gestures during a news conference in Cairo, Egypt July 17, 2019. REUTERS/Amr Abdallah Dalsh/File Photo

FILE PHOTO: Egypt's Finance Minister Mohamed Maait gestures during a news conference in Cairo, Egypt July 17, 2019. REUTERS/Amr Abdallah Dalsh/File Photo

CAIRO – 5 May 2020: Egypt’s budget for fiscal year 2020/2021 will be affected by COVID-19 pandemic especially with regard to revenues and growth rates, as well as an increase in the item of expenses, Minister of Finance Mohamed Ma’it said Tuesday.

Ma’it added during the meeting of the House’s Plan and Budget Committee that the budget for the new fiscal year began to be prepared in September of 2019, until January of the new year, clarifying that during that period, things were proceeding in a positive and ambitious manner, but the emergence of the coronavirus crisis changed all the targets in this budget.

Ma’it explained that the coronavirus pandemic imposed two new options on the Finance Ministry, either to make fundamental amendments to the state’s general budget, which would have clashed with the constitutional deadline for submission to the House of Representatives, or to work with the budget that was put in place until all matters related to the Corona virus pandemic were clarified.

The Minister affirmed, at the same time, keenness to achieve the strategic target as a primary surplus to reduce the debt.

He indicated that there are "inevitable" spending items in the public budget such as: wages, pensions, catering, "takaful and karama" and other expenses that must be met.

Ma’it emphasized that the budget aims to achieve balance by reducing costs without affecting the citizen, saying: "We follow and use all possible tools despite the negative influence in the search for rationalization of spending without affecting the citizens and without violating the state's obligations."

He pointed out that work is being done at the same time to work on increasing revenues, and that the State Resources Development Law approved by the House of Representatives comes within the framework of increasing revenues, stressing that the Egyptian economy is able to coexist despite being affected by the current crisis.

Egypt's budget in COVID-19's era

CAIRO - 21 April 2020: Coping with the global and economic circumstances taking place as a result of coronavirus (COVID-19) and the precautionary measures taken to curb it, Egypt's cabinet, headed by Prime Minister Mostafa Madbouli, approved, on March 26, the draft budget and the sustainable development plan for the new fiscal year 2020/2021.



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