Finance min. says state budget for FY 2020/21 hit LE 2.2T

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Thu, 18 Jun 2020 - 04:23 GMT

FILE PHOTO: Finance Minister Mohamed Maait speaks during a news conference in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany/File Photo

FILE PHOTO: Finance Minister Mohamed Maait speaks during a news conference in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany/File Photo

CAIRO - 18 June 2020: Finance Minister Mohamed Maait revealed that the state's new budget approved by the parliament for fiscal year (FY) 2020/21 is estimated at LE 2.2 trillion, with an increase of LE 138.6 billion from the FY 2019/20 budget.

A total of LE 682.5 billion was allocated for the sectors of health, education and scientific research, compared to LE 545 billion in the FY 2019/20, Maait said in press statements on Thursday.

He added that the financial allocations of the health sector in the new budget hit LE 258.5 billion, noting that the monthly allowance granted to medical professionals had been increased by 75 percent, with a total cost of LE 2.3 billion.

Around LE 423 billion was earmarked for the sectors of pre-university education, higher education and scientific research, he said.

Maait pointed out that the new budget aims to reform the wage structure through adopting a package of measures that target enhancing the financial conditions of state employees, with an additional cost of LE 34 billion.

Some LE 335 billion was allocated in the new budget for the wages of state employees, the minister said, citing that workers addressed by the Civil Service Law will be granted a 7 percent periodic bonus of the basic salary, while workers who are not subject to the aforementioned law will receive a 12 percent of the basic salary on June 30, 2020.

An additional monthly bonus ranging between LE 150 to LE 375 will be added to the basic salary of state employees, he noted.

As of July, the tax exemption limit will be increased by 60 percent, the minister said, pointing out that those who get paid an annual salary of LE 24,000 will be exempted from taxation.

A total of LE 170 billion was allotted to pay the due installment for the national authority for insurance and pensions, in addition to LE 19 billion for disbursing social security pensions and supporting the Takaful and Karama social protection program, Maait said.

Maait indicated that the new budget included the allocation of LE 6.4 billion for backing the social housing program and the development of Upper Egypt, as well as the rapid transportation vehicles' fund.

Around LE 3.5 billion was earmarked for supplying natural gas to 1.3 million households and LE 7 billion for boosting Egypt's exports, Maait said.

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