Egypt aims to achieve 4% increase in GDP during FY 2024/2025 | FinMin

Egypt set a target to achieve a gross domestic product (GDP) growth rate of 4% as part of Egypt’s draft state budget for the fiscal year (FY) 2024/2025, Minister of Finance, Mohamed Maait stated during his meeting with President Abdel Fattah El-Sisi, and Prime Minister Mostafa Madbouly.

The budget predicts achieving an initial surplus of 3.5% and a gradual reduction of the overall deficit to reach 6% of the GDP in the medium term, Maait added.

During the meeting, Maait said that Egypt's general state budget is projected to experience revenue growth of 36%, reaching EGP 2.6 trillion, while public expenditure is expected to grow by 29% to reach EGP 3.9 trillion.

He added that Egypt will allocate EGP 575 billion for wages, EGP 636 billion for subsidies, grants, and social benefits, with EGP 144 billion reserved for basic food supplies and EGP 154 billion for petroleum product subsidies. 

Furthermore, the budget sets aside over EGP 40 billion for the Takaful and Karama program and increases allocations for health and education by 30%, aligning with Egypt’s priority of empowering Egyptian citizens.

The minister pointed out that, during FY 2024/2025, the concept of the general government budget will be introduced for the first time, which will contribute to demonstrating the capabilities of the state’s public finances.

The general government budget will encompass the state's general budget as well as the budgets of 40 economic entities.

This consolidation brings the total revenues of the general government budget to EGP 4 trillion and total expenditures to EGP 4.9 trillion.

President El Sisi has instructed the government to persist in upholding financial discipline, ensuring the financial sustainability of the general state budget, and implementing essential measures to mitigate the public debt and alleviate its associated obligations.