Egypt's revenues hike to LE 453B in 1st half of 20/21, expenditures record LE 681.2B

CAIRO - 14 January 2021: Revenues of Egypt’s public budget agencies hiked 16 percent during the first half of the current fiscal year 2020/2021, according to Minister of Finance Mohamed Maait.

Maait said in a statement, Thursday, that Egypt's revenues recorded about LE 453 billion during the period from July to the end of last December, compared to about LE 391 billion during the same period of the previous fiscal year, which exceeded the annual growth rate of total budget expenditures, which amounted to about 9.9 percent.

He added that the total tax revenues rose by about 10 percent during the period from July to December 2020 to reach about LE 334 billion, compared to about LE 304 billion during the same period of the previous fiscal year.

He attributed the increase in tax revenues as a result of the growth in tax revenues from non-sovereign entities by about 12.4 percent, compared to the same period of the previous fiscal year; This is as a result of efforts to expand the tax base, achieve tax justice, and raise the efficiency of tax collection through the expansion of automation and electronic collection work, and the incentives granted to make settlements between the tax authority and financiers.

On the other hand, Maait said that the state’s general budget expenditures rose during the first half of the current fiscal year by 9.6 percent, on an annual basis.

“Egypt's expenditures increased during the period from July to last December, to LE 681.2 billion, compared to LE 621.6 billion for the same period of the previous fiscal year,” the minister stated.

He attributed the increase in expenditures to the increase in allocations to government investments, with the aim of boosting economic activity and improving the infrastructure and services provided to citizens, taking into account the provision of all support allocations and social protection programs, including the dues of the Insurance and pensions fund.

He said that the health sector's expenditures were increased by about 14.7 percent to finance the requirements for dealing with the repercussions of the coronavirus pandemic, and the increase in treatment allocations for those unable to pay the state, and health insurance at the support and contributions section.

He also indicated continuing to support health initiatives such as the 100 million health initiative to eliminate Virus C, the initiative to eliminate waiting lists, raise the efficiency of hospitals, provide medicines, vaccines, vaccines, and infant formula, and provide medical supplies and devices, and the presidential initiative was launched to increase the number of intensive care beds and children incubations.

The minister added that the first half of the current fiscal year witnessed an increase in education allocations by about 7.4 percent, and an increase in social protection allocations by 35.8 percent, reflecting the state's priority in providing the largest amount of support for the most vulnerable groups.

He pointed out that the expenses of the purchase of goods and services decreased by 7.6 percent compared to the previous year in light of the commitment to implement spending rationalization measures to ensure the availability of the required financial space to spend on government investments, allocations to pay economic activity, and social protection without negatively affecting the economic and financial goals of the Egyptian government.

The minister stated that the wages and workers compensation bill increased during the first half of the current fiscal year by 8.7 percent compared to the previous year; In a way that reflects the commitment of the Ministry of Finance to pay all dues for employees of the public budget agencies, and to provide the funding required to meet the burdens of initiatives to improve the incomes of workers in the state's administrative authority.

He noted that employees who are addressed by the Civil Service Law were granted a periodic bonus of 7 percent of the job wage on June 30, 2020, with a minimum of LE 75 per month and no maximum, and that workers not addressed by the Civil Service Law were granted 12 percent of the basic salary on June 30, 2020 with a minimum of LE 75 per month. 

"The approval of additional incentives with cut financial categories ranging from LE 150 to 370 per month according to job levels, and an increase in the tax exemption limit from LE 15,000 to LE 22,000 per year for all wage workers, and the creation of a reduced tax bracket of 2.5 percent for those with incomes less than LE 30,000 annually with downgrades for all of the following segments for low- and middle-income groups,” Maait added.

He also referred to the creation of a new bracket at a value of 25 percent for those whose annual net income exceeds LE 400,000, and the improvement of the incomes of teachers and mentors in kindergarten and first and second primary grades through the pre-university education development incentive.

The minister also hinted at financing an increase in the allowance of members of the medical professions 75 percent over what existed in the previous fiscal year at an additional annual cost of up to LE 2.25 billion, and financing an increase in the reward for doctors of excellence for all workers in all university hospitals, including Al-Azhar University hospitals, to become 2200 pounds per month instead LE 400 per month.