Sisi ratifies law linking state’s general budget for fiscal year 2021/22

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Sun, 04 Jul 2021 - 04:17 GMT

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Sun, 04 Jul 2021 - 04:17 GMT

President Abdel Fattah El Sisi gives a speech on  the centenary of the establishment of the Jordanian state on April 11, 2021- Press photo

President Abdel Fattah El Sisi gives a speech on the centenary of the establishment of the Jordanian state on April 11, 2021- Press photo

CAIRO – 4 July 2021: President Abdel Fattah El-Sisi ratified Law No. 74 of 2021 linking the state’s general budget for the fiscal year 2021-2022.

 

The first article of the law stipulates that the uses of the state’s general budget for the fiscal year 2021-2022 are estimated at LE 2.461 trillion.

 

The law was published in the Official Gazette in its Sunday issue.

 

The total resources of the state's general budget amount to LE 2.461 trillion, divided into LE 2 trillion for the state's administrative apparatus, and LE 185.953 billion for the local administration, according to earlier statement of Finance Minister Mohamed Maait.

 

He pointed out that the expected state budget expenditures amounted to LE 1.837 trillion. Spending on Health will hike 16 percent to LE 108.8 billion while spending on education will increase 10 percent to LE 172.6 billion, marking the largest spending increases. On the other hand, spending on social protection programs will reach LE 283 billion, down from LE 286 billion in 2020/2021.

 

According to the announced data, the size of the wages and compensation section for state workers reached LE 362 billion, including LE 171.213 billion for the state's administrative apparatus and LE 142.320 billion for the local administration.

 

Maait explained that the allocations of the special allowance amounted to LE 2.762 billion and the grant allocations reached LE 340 million, while the allocations of the fourth chapter of the state budget project for the fiscal year 2021/2022 (subsidies, grants and social benefits) amounted to about LE 321.301 billion, of which about LE 183.329 billion are allocated for subsidies.

 

The draft state budget for the fiscal year 2021/2022 includes allocating about LE 164.246 billion, for social benefits, of which about LE 19 billion is for social security pension allocations, and LE 70 million is for child pension allocations.

 

The volume of social assistance amounted to about LE 135.006 billion, of which 134.998 billion is contributions to pension funds, and LE 8.032 million is social assistance in kind.

 

The total amount of budget grants from foreign governments amounted to LE 85.422 billion, grants from foreign organizations.

 

He explained that in light of the repercussions of the spread of the coronavirus epidemic, it is intended that the growth rate of the gross domestic product (GDP) during the fiscal year 2021/2021 will increase to 5.4 percent (according to the estimates of the Ministry of Planning and Economic Development, which was used when preparing the budget) compared to an expected growth rate of 2.8 percent during the fiscal year of 2020/2021. The government will support the efforts of the Central Bank of Egypt (CBE) to reduce annual inflation rates to reach low annual rates estimated at about 7 percent, in accordance with the announced and published inflation targets of the CBE.

 

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