Finance Ministry issues financial statement of 20/21 budget

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Tue, 02 Jun 2020 - 12:14 GMT

FILE - Ministry of Finance

FILE - Ministry of Finance

CAIRO – 2 June 2020: The Ministry of Finance issued Monday the financial statement of the State’s general budget for fiscal year of 2020/2021.

The statement noted that the government works on overcoming the coronavirus crisis with the least possible harm through providing assistance and support to the neediest sectors and categories in a way that helps the economy to recover rapidly with the target of completing the development process.

It referred to the economic reform program implemented by the State during the last period, noting that this program contributed to building pillars of a powerful economy that is able to absorb shocks and deal with difficulties in a way that helps the economy gain the confidence of the world’s countries, international institutions and investors.

“Total expenditure in the 2020/2021 budget is planned to hit about LE 1.713 trillion, compared to LE 1.574 trillion in the 2019/2020 budget,” the ministry stated.

The ministry attributed this increase in expenditure to the rise in salaries as well as presidential decrees on enhancing conditions of workers in the state administrative body, increasing investments to improve services and creating more employment.

Wages and and workers compensation represent 19.6 percent of the total public expenditure in the budget, according to the statement.

The financial statement revealed allocating LE 335 billion for wages and workers compensation in 2020/2021 general budget with an increase of LE 33.8 billion compared to LE 301.1 billion in 2019/2020.

The statement clarified that the raise is to fund salaries, bonuses and benefits for workers of government bodies.

It also pointed out that the reform of the wage structure is one of the initiatives which contribute to improving the financial conditions for civil servants at a total cost of LE 34 billion.

As per public debt, the statement said that the interest expense of servicing the public debt in the coming budget is projected at LE 566 billion, compared to LE 569 billion in the current year's budget.

Moreover, the statement showed that purchases of non-financial assets hit LE 280.6 billion in 2020/2021 budget compared to LE 211.2 billion in the 2019/2020 budget.

Purchasing commodities and services in the coming fiscal year budget rose to about LE 100.2 billion, representing 5.8 of total expenditures, compared to LE 74.9 billion in the 2019/2020 budget.

The statement revealed that some of these funds will go to buying medicine, medical stuffs, printing school books, etc

Regarding oil products subsidies, it stated that it will reach LE 28.193 billion, down from LE 52.963 billion in the current budget, marking a decrease of LE 24.770 billion.

It added that subsidies for medical drugs and baby milk will increase by about LE 250 million, in 2020/2021 budget, reaching LE 1.750 billion.

On March 26, Egypt’s cabinet, headed by Prime Minister Mostafa Madbouli, approved Thursday the draft budget for the new fiscal year 2020/2021.

Egypt's cabinet approves 2020/21 draft budget

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.



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