CAIRO - 20 March 2024: Minister of Finance, Mohamed Maait, emphasized that the government aims to reduce the debt-to-GDP ratio to less than 80 percent over the next three years.
He pointed out on Tuesday that there is an annual ceiling for the debt of budget entities and economic bodies that cannot be exceeded except with the approval of the President, the Cabinet, and the House of Representatives.
Maait also mentioned that a significant space for public investments in the state has been left for the private sector to thrive, indicating that restructuring the state's public finances integrates with efforts to correct the economic trajectory.
The minister noted that the expected inflows of foreign cash after the agreement with the International Monetary Fund (IMF) will exceed $20 billion, as financial institutions and international development partners will support the Egyptian economy with additional financing packages.
Furthermore, he stated that the financial package provided by the European Union, estimated at €7.4 billion, also reinforces the path of economic stability, which has begun to reflect positively in the improved outlook of credit rating institutions for the future of the Egyptian economy, led by Moody's.
This came in an open dialogue with media and press figures about the upcoming budget project for the fiscal year 2024/2025.
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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