Ministry of Finance
Kouchouk affirmed the government's commitment to stimulating private sector growth highlighting the ongoing structural reforms in Egypt's economy
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.
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
During a panel discussion, Kouchouk emphasized the importance of recent legislative measures aimed at abolishing preferential tax treatments across all sectors
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
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.
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.
The upgraded classification, facilitated by the International Finance Corporation (IFC)-led SBFN, is a testament to the Central Bank of Egypt's (CBE)
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.
Furthermore, he pointed to Egypt’s target of achieving a primary surplus of 3.5 percent in the fiscal year 2024/2025.
This strategy aims to extend the life of debt and minimize its burden and cost
Minister Maait emphasized the importance of international financial institutions in providing sustainable funding to developing economies.
Maait emphasized the pressing need for the private sector to assume a more prominent role in Egypt's economy, considering that nearly one million young individuals enter the labor market yearly while the government can only create around 100,000 new jobs
Maait emphasized the importance of addressing import practices that lead to the accumulation of goods in ports and any goods left unclaimed by their owners beyond the prescribed legal period will be dealt with decisively
Egypt has also managed to stabilize the total deficit at 5.42 percent. To further stimulate economic growth, investments financed by the state's public treasury have decreased by 19 percent, creating space for increased participation from the private sector
The government has disbursed a total value of 54.5 billion pounds in support of exporters through initiatives addressing the payment of late dues to the Export Development Fund since October 2019
During the meeting, the Prime Minister emphasized the urgent need to expedite customs procedures to release goods and merchandise at various Egyptian ports. This measure aims to boost the supply of essential commodities, manufacturing inputs, and medicines in the Egyptian market.
737 field campaigns involving 50,000 establishments in Cairo and other areas were conducted and showed a compliance rate of 66 percent for income tax registration and 49 percent for value-added tax registration. As a result of these campaigns, tax dues totaling LE 1.6 billion have been paid instantly.
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