Gov’t investments to rise by 46% in FY 2018/2019: Planning Ministry

CAIRO – 2 April 2018: The Egyptian investment plan of the fiscal year 2018/2019 targets a gross domestic product (GDP) of 5.8 percent, according to the Ministry of Planning.

The plan also aims to raise the governmental investments by 46 percent during the upcoming fiscal year.

Prime Minister Sherif Ismaiil received the budget of 2018/2019 on March 28 from Finance Minister Amr el- Garhy.

Egypt’s Cabinet approved the new budget and sent it to the Parliament to be discussed.

The new budget targets a budget deficit of 8.4 percent of GDP and investments worth LE 100 billion, up from LE 70 billion in the current budget.

It also targets expenditures of LE 1.41 trillion, GDP growth of 5.8 percent and 88 percent public debt. It is worth mentioning that the budget targets achieving a primary budget surplus.

Taxes and tariff yields are projected to contribute LE 760 billion to the new budget’s revenues.

The upcoming budget seeks to lower the unemployment rate to 10.4 percent with an inflation rate of 13 percent.

Garhy said that the new budget will see increased spending on social protection.

The new fiscal year, which will start on July 1, is expected to see a fresh round of subsidy cuts that will likely lead to price hikes.

The new budget is set to be the largest budget in Egypt’s history.