CAIRO – 19 February 2024: The Ministry of Finance will integrate 59 economic entities to its overall budget, this came in statements made by Finance Minister, Mohamed Maait.
The integration of these bodies will be implemented gradually over a period of five years, with the initial presentation of the general government budget scheduled for the fiscal year 2024/2025.
Finance Minister Maait highlighted that for the first time the government will be presenting 61 budgets, which are the general government budget, the budgets of 59 economic entities, and the general state budget. The total revenue is projected to reach approximately LE 5 trillion, while the revenues from the state's general budget alone amount to LE 2.1 trillion.
The Egyptian cabinet has also approved the amendment of specific clauses within the Unified Public Finance Law. This amendment is aimed at establishing the widely known "general government budget" to ensure the principle of comprehensive budgeting is upheld.
The amended proposal has been subsequently forwarded to the House of Representatives for deliberation, which is slated to commence next week. The ministry will submit a Tax Policy Strategy for Egypt 2024/2030 document to the National Dialogue.
Minister Maait also noted that the debt-to-GDP ratio experienced a decline from 103 percent in June 2016 to around 80 percent of GDP by June 2020. However, due to inflation and higher interest rates, the ratio has risen to 95.7 percent as of June 2023.
He pointed out that about LE 54 billion have been disbursed to exporting companies since the start of implementing initiatives to pay late dues to exporters in October 2019.
Maait indicated that the state’s public treasury bears the value of the tax on built properties used in practicing some industrial and productive activities, for a period of 3 years until the end of 2026, which amounts to EGP 1.4 billion annually.
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