FILE - Minister of Finance Mohamed Ma'it
CAIRO - 16 April 2019: Minister of Finance Mohamed Ma'it reviewed Egypt's draft budget for new fiscal year 2019/2020 in the Parliament, stating that the draft budget aims to increase the growth rate to about 6 percent, at a cost of LE 6.163 trillion.
Ma'it added that the new budget focuses on the growth of containment and sustainability to result in reducing inflation to 10.5 percent, and the unemployment rate to 9 percent.
The minister stated that it also aims at reducing the total budget deficit to about 7.2 percent of GDP compared to 8.4 percent in FY17/2018.
Moreover, he said that public debt is planned to reach 89 percent of GDP, achieving a primary budget surplus of 2 percent.
The budget deficit is anticipated to hit 7.2 percent of GDP, down from 8.4 percent of 2018/2019, announcing that the government will allow new borrowing of LE 445.1 billion in the next fiscal year, according to the speech.
In the same context, the minister noted that revenues are foreseen to record LE 1.13 trillion, compared to the current FY's expected revenues of LE 969 billion, with an increase of 17 percent. The budget revealed that LE 856.6 billion go for tax collections with an increase of 13 percent and other earnings rise 30 percent to LE 277.8 billion.
Egypt's total resources in the new budget recorded LE 1.979 trillion, representing 31 percent of GDP, distributed over three main categories which are: revenues (LE 1.134 trillion, representing 18.47 percent of GDP), receipts from the acquisition of financial assets amounting to LE 24 billion by 0.4 percent of GDP, and Borrowing and issuing securities amounting to LR 821 billion (representing 13.3 percent of the GDP).
Regarding the targeted fiscal policies reforms during the coming year, the minister said that they include reforms related to public expenses, noting that expenses will only raise 12.2 percent, in conjunction with working on pushing economic activities to find more real opportunities, improving the quality of public services and raising the efficiency of expenses on social protection programs.
By the beginning of April, the Ministry of Finance issued the 2019/2020 preliminary budget draft and the Parliament will receive the draft at least 90 days before the start of the fiscal year on July 1 to have it signed into law by the end of June.
CAIRO - 1 April 2019: The Ministry of Finance issued the 2019/2020 preliminary budget draft and the Parliament will receive the draft at least 90 days before the start of the fiscal year on July 1 to have it signed into law by the end of June.
Following the announcement of Egypt's draft budget for 2019/2020, Moody’s Rating Agency said that Egypt’s budget for fiscal year 2019/2020 points to continued fiscal consolidation, describing it as credit positive. Moody’s expected Egypt to achieve a growth rate of 5.8 percent in 2019/2020.
CAIRO - 4 April 2019: Moody's Rating Agency said that Egypt's budget for fiscal year 2019/2020 points to continued fiscal consolidation, describing it as credit positive. According to the recent news published by domestic media, Moody's expected Egypt to achieve a growth rate of 5.8 percent in 2019/2020.
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