Mohamed Maait
Egypt is embarking on the fiscal year 2024/25, the government has prepared an ambitious budget exceeding LE 5.5 trillion, marking a significant increase from the previous year's LE 3.4 trillion.
Since October 2019, the government has provided approximately LE 62 billion in support to exporting companies.
According to the recent Global Electric Mobility Readiness Index (GEMRIX) 2023, Egypt ranked 28th as a “starter market” with significant potential for early infrastructure development
In terms of customs electronic receipts, there was a growth of 38 percent, totaling LE 284.3 billion from July 2023 to May 2024, in contrast to about LE 205.8 billion during the same period in the last fiscal year.
This represents an increase compared to the previous fiscal year, where the surplus was only LE 116 billion, accounting for 1.15 percent of the GDP.
Maait expressed optimism about acquiring the loan either by the end of 2024 or at the beginning of 2025.
Maait addressed one of the key priorities outlined in the new budget, which sets aside LE 40.5 billion to support productive activities and enhance export capabilities.
Minister Maait reaffirmed that the government's support for exporting companies over the past four years amounts to approximately LE 55 billion.
The total budget for the upcoming fiscal year is currently at approximately LE 5.5 trillion, a significant increase from the current fiscal year’s budget of about LE 3.4 trillion
It is emphasized that this new economic trajectory will effectively align fiscal and monetary policies.
Maait also stated that Egypt has succeeded in providing LE 115 billion to support the health sector.
The beneficiaries of this program are required to have completed their paperwork for shipments by June 30, 2023.
In a statement, Maait highlighted the impact of global and regional crises on Egypt's economy, particularly through soaring inflation.
Maait said that the goal of the reforms is to inject more private investment flows into Egypt's economy and achieve more sustainable economic growth, led by the private sector in the upcoming period.
This surplus was utilized to partially cover interest payments on the public debt, resulting in a decrease in the country's overall deficit to 6 percent of the GDP by June 2023.
In the last quarter of the current fiscal year, LE 715.7 million has been allocated to pay the entitlements of employees within the funds and accounts, accounting for the recent increase, as stated by the Minister of Finance.
Minister Maait revealed that the financing agreement with Japan follows the successful completion of the International Monetary Fund's efforts to increase the loan's value to Egypt.
Maait explained that the new budget focuses on balancing between mitigating inflationary pressures experienced by citizens, meeting developmental needs, and maintaining financial discipline
By the end of June 2024, Egypt anticipates receiving $1 billion from the World Bank, €1.07 billion from the European Union, and an additional $820 million from the International Monetary Fund (IMF).
Egypt has already received $820 million as a result of completing the first and second reviews.
