Mohamed Maait
Maait said that the goal of the reforms is to inject more private investment flows into Egypt's economy and achieve more sustainable economic growth, led by the private sector in the upcoming period.
This surplus was utilized to partially cover interest payments on the public debt, resulting in a decrease in the country's overall deficit to 6 percent of the GDP by June 2023.
In the last quarter of the current fiscal year, LE 715.7 million has been allocated to pay the entitlements of employees within the funds and accounts, accounting for the recent increase, as stated by the Minister of Finance.
Minister Maait revealed that the financing agreement with Japan follows the successful completion of the International Monetary Fund's efforts to increase the loan's value to Egypt.
Maait explained that the new budget focuses on balancing between mitigating inflationary pressures experienced by citizens, meeting developmental needs, and maintaining financial discipline
By the end of June 2024, Egypt anticipates receiving $1 billion from the World Bank, €1.07 billion from the European Union, and an additional $820 million from the International Monetary Fund (IMF).
Egypt has already received $820 million as a result of completing the first and second reviews.
Furthermore, he pointed to Egypt’s target of achieving a primary surplus of 3.5 percent in the fiscal year 2024/2025.
This strategy aims to extend the life of debt and minimize its burden and cost
This came during a meeting with Fahd Al Turki, Director General and Chairman of the Board of Directors of the Arab Monetary Fund (AMF) on the sidelines of World Bank and IMF spring meetings.
Minister Maait emphasized the importance of international financial institutions in providing sustainable funding to developing economies.
Maait emphasized the pressing need for the private sector to assume a more prominent role in Egypt's economy, considering that nearly one million young individuals enter the labor market yearly while the government can only create around 100,000 new jobs
Maait emphasized the importance of addressing import practices that lead to the accumulation of goods in ports and any goods left unclaimed by their owners beyond the prescribed legal period will be dealt with decisively
Egypt has also managed to stabilize the total deficit at 5.42 percent. To further stimulate economic growth, investments financed by the state's public treasury have decreased by 19 percent, creating space for increased participation from the private sector
The government has disbursed a total value of 54.5 billion pounds in support of exporters through initiatives addressing the payment of late dues to the Export Development Fund since October 2019
Minister Maait emphasized that the initiative has resulted in a significant influx of remittances from Egyptians abroad, amounting to $750 million.
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.
737 field campaigns involving 50,000 establishments in Cairo and other areas were conducted and showed a compliance rate of 66 percent for income tax registration and 49 percent for value-added tax registration. As a result of these campaigns, tax dues totaling LE 1.6 billion have been paid instantly.
The interest rate for this financing will not exceed 15 percent. The allocated funds will be divided into two categories: LE 105 billion for working capital and LE 15 billion for the acquisition of machinery, equipment, or production lines.
In a statement released on Saturday, the minister emphasized the significance of the IMF’s approval in support of Egypt’s economic reforms
