Coronavirus causes Egyptian economy losses of LE 370B

CAIRO – 27 April 2021: Coronavirus caused economic losses of LE 370 billion to the Egyptian economy, according to Minister of Finance, Mohamed Maait said.

Maait added in a TV interview that more than LE 100 billion has been spent to support the sectors affected by coronavirus.

The Minister of Finance stated that the deficit was estimated at LE 400 billion for the current fiscal year, while the estimates rose to 500 billion pounds now.

He noted that the debt will be within 88 percent of the gross domestic product (GDP).

"During the period from July to March of the current fiscal year 2020-2021, LE 132.5 billion was transferred from the state treasury to the Insurance and Pensions Fund,” he stated.

He mentioned that Egypt spent LE 388.5 billion on social protection programs, during the period from July to March, at an annual growth rate of 17.1 percent, in addition to LE 45.7 billion to support food supplies, at an annual growth rate of 23.8 percent, and about LE 12.9 billion for the social security pension and the Takaful and Karama program, with an annual growth rate of 7.3 percent.

Maait explained that the total financial allocations directed to financing government investments rose by 45 percent to reach LE 163.7 billion, as the investments financed by the state treasury rose to about LE 115 billion, an increase of 29 percent over the investigator during the same period of the previous year.

The Ministry of Finance has provided LE 31 billion additional financing for the investment plans of a number of government agencies for the current fiscal year 2020/2021, in a way that guarantees the implementation of the targeted national projects. Thus, the implemented government investments, whose burdens were borne by the Ministry of Finance, amounted to about LE 194.7 billion, with an annual growth rate of 72.3 percent.

Total spending on the health sector during the past nine months amounted to LE 68.3 billion, with an annual growth rate of 15.5 percent, of which: LE 34.1 billion for wages and compensation of workers with an annual growth rate of 18.6 percent, in addition to LE 13.4 billion for investments, at an annual growth rate of 53.2 percent.

The minister explained that the total spending on the education sector amounted to LE 113.2 billion, at an annual growth rate of 10.1 percent, of which LE 83 billion for wages and compensation for workers, at an annual growth rate of 10.3 percent, and LE 20.3 billion for investments, at an annual growth rate of 16.5 percent. Moreover, allocations for export burdens and support amounted to LE 3.2 billion, at an annual growth rate of 19 percent, in a manner that contributes to providing financial liquidity for exporting companies; To ensure increased productivity, and to enhance our competitiveness in global markets.

"The efforts of the Ministry of Finance continued to extend the life of the debt, reaching 3.2 years in June 2020, instead of 1.3 years in June 2013, and about 1.8 years in June 2014, and it is targeted to reach 3.8 to 3.6 years by June 2021,” he noted.