The Egyptian Minister of Finance, Mohamed Maait, announced the details of the Cabinet’s approval of the budget for the new fiscal year 2023/2024.
The minister stressed that the approval of the budget comes in light of the exceptional circumstances witnessed by the global economy, and imposes extremely difficult pressures on the budgets of countries, including Egypt, whether in terms of the unprecedented rise in the prices of goods and services, as a result of the disruption of supply and supply chains, or the high cost of financing.
“Financial allocations for public investments are witnessing an unprecedented increase, especially self-financed, to reach EGP 306 billion out of total public investments amounting to EGP 586.5 billion, up from EGP 376 billion, at an annual growth rate of 55.9%, to create new jobs and improve services provided to citizens,” the Egyptian minister said.
The Egyptian minister added that the state’s general budget, “the state’s administrative apparatus, local administration, and public service agencies,” totals its expenditures, according to estimates for the next fiscal year, about 3 trillion pounds, at an annual growth rate of 44.4%, while the total estimated revenues amount to 2.1 trillion pounds, at an annual growth rate. 41.2% It is expected that tax revenues will increase by 31% as a result of expanding the tax base and registering new financiers, by proceeding with mechanization projects in a way that reflects the efforts to maximize the state’s resources, which qualifies it to fulfill the implementation of development priorities, expand the social protection network, and deal with the effects of international economic challenges. And local, in a way that contributes to limiting the repercussions of the global inflationary wave on citizens as much as possible; Especially the most needy and most cared groups, along with completing the process of building the new republic; Which is based on the continued implementation of the presidential initiative “A Decent Life”
The minister indicated that allocations for university and pre-university education and scientific research were increased in the budget for the next fiscal year by 48.6% billion pounds, to reach 305.2 billion pounds, with a growth rate of 19%, and allocations for the health sector were increased by 13.3 billion pounds, to reach 111.2 billion pounds, with a growth rate. 14%.
And the minister continued, that the allocations for university and pre-university education and scientific research were increased in the budget for the next fiscal year by 48.6 billion pounds, to reach 305.2 billion pounds, at a growth rate of 19%, and allocations for the health sector were also increased by 13.3 billion pounds, to reach 111.2 billion pounds at a rate A growth of 14%, pointing out that the financial allocations for those in charge of providing educational and health services have been increased within the recently decided wage improvement package, as the performance incentive for teachers in Education and Al-Azhar Al-Sharif was raised by 300 pounds per month, and the quality incentive for faculty members and their assistants in universities and research centers was increased by an amount 300 pounds per month, and an increase in risk allowance for medical professions with financial categories ranging from 400 to 475 pounds for doctors and nursing staff, with doubling the categories of night shifts, overnight stays, and an emergency incentive; To ensure the provision of educational and health services in a distinguished manner.
The minister said, “We are committed to meeting the needs of citizens and reducing the inflationary effects on them, and achieving economic and financial goals as well, as the primary surplus is expected to reach 2.5% of GDP, which is the highest primary surplus targeted in the framework of efforts to reduce government indebtedness to GDP, and record A deficit rate of about 6.9%, by maximizing the efforts of financial discipline, the competitiveness of the Egyptian economy, improving the business environment and simplifying procedures to stimulate investment, and achieving a growth rate of 4.1% of GDP, by pushing productivity rates, and supporting structural reforms so that the private sector leads the locomotive development, and provides more productive job opportunities.
He pointed out that EGP 28.1 billion has been allocated to support and stimulate exports, with an annual growth rate of 368.3%, which contributes to the speedy disbursement of dues to exporters, within 3 months after completing the submission of papers, in a way that helps provide cash liquidity that drives productive activities, and enhances the penetration of Egyptian products into global markets. EGP 19.5 billion has been allocated to support industrial and agricultural productive activities.
The minister stated that, according to estimates of the new draft budget, allocations for subsidies, grants, and social benefits rose to 529.7 billion pounds, or 48.8 percent, including 127.7 billion pounds to support food commodities at an annual growth rate of 41.9 percent, 119.4 billion pounds to subsidize petroleum materials, and 6 billion pounds. For health insurance and medicines, with an increase of 58.2% over the current fiscal year, 10.2 billion pounds to support housing “low-income and social housing” at an annual growth rate of 31.5%, 31 billion pounds for social security pension at an annual growth rate of 25%, and 202 billion pounds in contributions to pension funds at a growth rate. An annual rate of 6%, to ensure the provision of the necessary financial liquidity to serve pensioners, beneficiaries, and the insured, and to fulfill all obligations towards them, and more than 8 billion pounds for the treatment of citizens at the expense of the state, at an annual growth rate of 14.3%, indicating that the budget for the next fiscal year also includes the allocation of 470 billion pounds for wages, with an annual growth rate of 17.5% for the current fiscal year to improve the conditions of state workers.
This article was originally published by RT.