According to a statement by Finance Minister Mohamed Maait following the parliament's decision, the total budget for the upcoming fiscal year stands at approximately EGP 5.5 trillion, a significant increase from the current FY’s budget of about EGP 3.4 trillion
The Egyptian House of Representatives has greenlit the state's draft general budget for the fiscal year FY2024/2025.
According to a statement by Finance Minister Mohamed Maait following the parliament's decision, the total budget for the upcoming fiscal year stands at approximately EGP 5.5 trillion, a significant increase from the current FY’s budget of about EGP 3.4 trillion.
Looking at the budget deficit, Egypt forecasted the deficit to reach around EGP 1.2 trillion in the next fiscal year, equivalent to 7.3% of the gross domestic product (GDP).
There are extensive efforts targeting a surplus of EGP 591.4 billion, representing 3.5% Egypt’s estimated GDP, with Maait noting the significant impact of the one-time injection of fresh money from the Ras El Hikma deal.
Expected revenues for the FY2024/2025 are EGP 2.6 trillion, with a target of boosting tax revenues by 30.5%, reflecting initiatives to enhance tax administration efficiency and broaden the tax base.
Minister Maait stressed the implementation of a strategy to reduce the state budget agencies' debt rate to less than 80% of the GDP by June 2027.
The debt ceiling for the new fiscal year has been set at EGP 15.1 trillion, indicating a downward trend from previous years, with strict measures in place to ensure adherence to this limit.
Maait explained that the approved budget for the next fiscal year sees a notable surge in public expenditures, rising by approximately 29% to reach EGP 3.870 trillion, reaching around 22.6% of the GDP for the upcoming fiscal year.
The Minister also outlined various financing programs aimed at stimulating economic activity, particularly in supporting the industrial sector and export activities.
These initiatives total EGP 40.5 billion, including funds to improve export, subsidies for industrial sector electricity prices, subsidies for productive sectors, cash incentives for small enterprises, support for the automotive industry, and continued support for farmers and agriculture.
State investments are expected to hit EGP 496 billion, compared to EGP 334 billion in the current FY’s estimates.
However, 44% of these investments are self-financed and will not impact the budget deficit, the minister noted.
A maximum limit of EGP 1 trillion has been set for public investments across all state agencies and institutions.
Maait highlighted that constitutional obligations regarding health and education have been met, with allocations of EGP 496 billion for health, EGP 565 billion for pre-university education, EGP 293 billion for higher and university education, and EGP 140.1 billion for scientific research.
