This came during a cabinet meeting that was held via the video conference to discuss the initial estimations of the financial performance of the 2019-20 fiscal year.
The ministry seeks to increase the tax revenues to hit LE 1.059 billion and decrease interests to reach LE 528.9 billion.
Ma’it added that the budget project for the coming fiscal year 2020/2021 was expected to achieve an initial surplus of 2 percent, but that after the occurrence of the corona virus crisis, this surplus is expected to drop to only 0.6 percent.
The budget’s current deficit accounts for 4.4 percent of the gross domestic product (GDP), against 4.1 percent last year, the ministry added.
Ma’it added that it’s expected to achieve a budget deficit of 7.2 percent in the current fiscal year, compared to around 13 percent 3 years ago.
Sisi urged carrying out reforms in order to enhance confidence in the Egyptian economy.
Egypt targets to reduce the budget deficit to 7.2 percent during 2019/2020, and to raise the growth rate to 6.1 percent, Minister of Finance Mohamed Ma’it said.
The ministry said revenues rose by 29 percent to hit LE 456.5 billion against LE 353.7 billion during the corresponding period of the previous fiscal year.
The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is scheduled to issue treasury bills (T-bills) worth LE 17 billion on Sunday, Feb.17.
Pharos Holding expected Egypt to achieve a pickup in economic activity over the next five years.
The minister added that Egypt targets a growth rate of 5.8 percent during the current fiscal year 2018/2019.
The economy has been battered by years of turmoil that began after mass protests in 2011 forced President Hosni Mubarak to step down.
Garhy added that tax yields also climbed 45 percent, compared to an average of 20 percent during the last three years.
The budget deficit has reached 218 billion pounds during the first half of 2017-2018, the Finance Ministry said in a report.
HC also expects the interest rate to be decreased by 800 basis points during 2018/2019, with an average rate of inflation that amounts to 13 percent.
The T-bonds were offered in two installments, the first valued at LE 1.75 billion with a three-year term and the second worth LE 1.25 billion with a seven-year term.
Egypt targets a budget deficit of 8.4 percent of gross domestic product (GDP) in the new budget of fiscal year 2018/19, which will start on July 1.
IMF's Mission Chief for Egypt Subir Lall told Egypt Today that the country needs further reforms to bolster its private sector and job creation.
The economic growth rate hit 5.2 percent with the start of the current fiscal year, Amr el-Garhy said.
Egypt’s fiscal years starts on July 1 and lasts until June 30 of the following year.