Egypt aims to reduce debt ratio to 80% by 2027

CAIRO - 7 April 2024: Recent reforms undertaken by the Egyptian state to enhance the economic situation contribute to achieving stability and economic progress, Minister of Finance, Mohamed Maait stated.

 

He added during the launch of the procedural guide for responsive program budgets promoting gender equality and equal opportunities, that these reforms align with the overarching goals of the state's general budget, which are ambitious and integrated.

 

The minister highlighted that these targets are led by achieving a significant initial surplus of 3.5 percent of the GDP, reducing the total deficit to 6 percent in the medium term, and lowering the debt ratio to 80 percent by June 2027. 

 

This includes setting a maximum limit for the government's debt value in all its economic, service, administrative entities, and local authorities, which cannot be exceeded except in cases of national emergencies and necessity with the approval of the President, the Cabinet, and the Parliament, according to Maait.

 

Furthermore, there are plans to increase spending allocations on health and education by more than 30 percent, as well as increasing support and social protection allocations to alleviate the inflationary burdens on citizens.

 

On March 27,  the Cabinet approved the draft budget for the fiscal year 2025/2024, as well as the budgets of public economic entities, with total expenditures of LE 6.4 trillion and revenues of LE 5.05 trillion.