CAIRO - 20 March 2024: President Abdel Fattah El-Sisi has instructed the government to intensify efforts aimed at achieving economic sustainability by reducing the total budget deficit and the ratio of public debt to gross domestic product (GDP), and increasing productive projects, especially those geared towards export.
El-Sisi also directed to continue and enhance efforts to alleviate burdens on citizens, particularly in terms of controlling inflation, with a focus on human development sectors, especially health and education, during the upcoming general budget, according to a statement issued Wednesday by the Presidency.
This came during a meeting between President El-Sisi, Prime Minister Mostafa Madbouly, Central Bank Governor Hassan Abdalla, Minister of Planning and Economic Development Hala El-Said, Minister of International Cooperation Rania Al-Mashat, and Finance Minister Mohamed Maait.
The President was briefed on the overall economic indicators in light of recent investment and financing measures, economic sector revitalization packages, and investment attraction programs that the government has focused on over the past year.
On Tuesday, Egypt’s Finance Minister Mohamed Maait announced that the total public expenditures targeted for the budget of the upcoming fiscal year 2024/2025 amount to LE 3.9 trillion, while the expected revenue reaches approximately LE 2.6 trillion.
According to the amount of expenditures and revenues, the expected total deficit would be LE 1.3 trillion.
The minister added the Ministry of Finance aims for LE 2 trillion in tax revenues in the new budget, without adding any new burdens on citizens or investors, by maximizing efforts to integrate the informal economy through optimal utilization of available tax systems.
The minister affirmed that health and education are a "presidential priority" to continue the strategy of building the Egyptian citizen during the upcoming budgets, starting from the budget of the fiscal year 2025/2024, while working to secure a strategic reserve of goods that meets the basic needs of citizens, in addition to increasing spending on social protection to alleviate the burdens on middle and low-income individuals.
A total of LE 596 billion has been allocated for support, including over LE 134 billion for subsidized goods and over LE 147 billion to support petroleum products, due to the rise in global oil prices and the impact of exchange rate changes, according to the minister.
"This represents a major challenge for the state's public finance," said Finance Minister Mohamed Maait.
The minister pointed out that more than LE 40 billion has been allocated for "Takaful and Karama" (Solidarity and Dignity), explaining that the bread subsidy exceeds LE 125 billion, with expectations of exceeding its cost by 125 piasters.
"The citizen pays only 5 piasters, and the treasury bears the difference," according to Maait.
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