Total expenditures rose by 19.7% in 2 months - Ministry

CAIRO - 10 October 2021: The Finance Ministry said Sunday that total expenditures rose by 19.7 percent to reach LE 261 billion in the months of July and August, compared to LE 218 billion during the same period of 2020.

Wages and workers’ compensation expenses increased by LE 6.6 billion (12.6 percent) to reach LE 59 billion within the two months, while spending on the purchase of raw materials increased by LE 1.2 billion to reach LE 2.5 billion, the ministry said in a statement.

Food commodities' subsidies rose to LE 6.8 billion during the study period, while allocations to the state treasury’s contribution to pension funds reached about LE 19 billion, it added.

Expenditure on social safety benefits (including cash support for the Takaful and Karama programs) amounted to about LE 3.6 billion, the statement revealed.

Spending on the purchase of non-financial assets (investments) rose by LE 7.4 billion (up by 41.3 percent) to reach LE 25.3 billion, reflecting interest in developing infrastructure and improving services provided to citizens, it added.

The Finance Ministry attributed the remarkable increase in spending on direct investment (including customs duties) by LE 6.4 billion (37 percent) to the increase in spending on construction and the purchase of assets and equipment within the state’s plan to develop infrastructure, where the value of construction reached LE 9 billion with a growth rate of 54 percent over the previous fiscal year.

Investment in non-residential buildings amounted to about LE 37.8 billion with a growth rate of 17.8 percent over the previous fiscal year, while the allocations for machinery and equipment amounted to LE 5.5 billion within the two months, it added.

Allocations for social protection increased by LE 4.3 billion (4.9 percent) to reach LE 91.8 billion during the study period, compared to LE 87.6 billion during the same period of the previous fiscal year.

Expenditure on the health sector also increased by LE 3 billion (30.3 percent) to reach LE 13.5 billion, compared to LE 10.4 billion, while spending on the education sector rose by about LE 4.8 billion (18 percent) to reach LE 31.3 billion during the study period, compared to LE 26.5 billion during the same period of the previous fiscal year.