CAIRO – 3 April 2024: President Abdel Fattah El-Sisi has formally approved the amendments to the Unified Budget Act, as stated in the decree published in the Official Gazette yesterday.
According to Minister of Finance, Mohamed Maait, the recent changes to the Unified Public Finance Law provide legislative tools to effectively manage Egypt's deficit and debt levels in relation to the gross domestic product.
These amendments entail determining the official measures of the state's public finances based on the revenues and expenditures of the "general government" budget, which now includes the budgets of all public economic entities, state administrative agencies, and localities.
As a result of this expansion, the total expenditures of the general government will amount to LE 6.6 trillion, while its revenues will reach LE 5.3 trillion for the fiscal year 2024/2025, added Minister Maait.
This consolidation involves merging the budgets of all 59 economic entities within the state budget Itself, as approved by Members of Parliament in the previous month.
Minister Maait further explained that this law will help Egypt reduce debt and its burdens across all general government entities, aiming to achieve a debt-to-domestic product ratio of 80 percent by June 2027.
Implementation of the unified public finance law is expected to lead to a primary surplus of over 3.5 percent of GDP and a reduction of the total deficit to 6 percent In the medium term, the minister emphasized.
Additionally, the Minister announced that the state's total investments in all its bodies and entities during the next fiscal year, 2024/2025, will be capped at a maximum limit of LE 1 trillion.
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