(MENAFN- Daily News Egypt) Egypt's draft budget for the fiscal year (FY) 2024/25 outlines ambitious economic targets, with a projected GDP growth of 4% and a commitment to reducing the budget deficit.
Finance Minister Mohamed Maait presented the budget to Egypt's President Abdel Fattah Al-Sisi on Tuesday. It forecasts a primary surplus of 3.5% and a medium-term goal of bringing the overall deficit down to 6% of GDP.
The budget reflects a focus on both economic growth and social well-being. Total revenues are expected to climb 36% to EGP 2.9 trillion ($60.64bn), while expenditures will rise 29% to EGP 3.9 trillion ($81.56bn).
Prioritizing People and Infrastructure
In line with President Al-Sisi's directive, the budget prioritizes human development. The health and education sectors will receive a significant boost, with a 30% increase in their allocations.
The budget also earmarks EGP 575bn for wages, EGP 636bn ($13.30bn) for subsidies and social benefits, and EGP 40bn ($0.84bn) for the“Takaful and Karama” social support program.
For the first time, the budget incorporates the concept of a general government budget, providing a more comprehensive picture of the state's finances. This broader framework shows total revenues reaching EGP 4 trillion ($83.65bn) and total expenditures reaching EGP 4.9 trillion ($102.47bn).
Easing the Burden and Securing Investment
Recognizing the challenges faced by low- and middle-income families, the government has allocated EGP 596bn ($12.66bn) for subsidies in the next budget. Additionally, the target for petroleum subsidies in the current fiscal year has been raised by 9% to EGP 130bn ($2.72bn).
Egypt's commitment to economic reform is further evidenced by its agreement with the International Monetary Fund (IMF) to increase the value of its financing program from $3bn to $8bn.
The budget announcement comes on the heels of a major investment deal with the Abu Dhabi-based holding company ADQ. This $24bn agreement grants ADQ the rights to develop the Ras Al Hikma project. Additionally, the deal includes $11bn in deposits that will be used to invest in other significant projects across Egypt.
The draft budget offers a glimpse into Egypt's economic roadmap for the coming year.
MENAFN26032024000153011029ID1108025495
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.