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Annual revenue rates up 14.6% despite pandemic: FinMin

Egypt was able to see a LE 25 billion initial surplus during that first 9 months of the fiscal year said Maait

By: Business Today Egypt

Tue, Apr. 6, 2021

Annual revenue growth rates climbed 14.6 percent despite the on-going pandemic’s effect’s on economic activity, states Minister of Finance Mohamed Maait, with annual expenditure rates reaching 11.2 percent.

This is attributed to the government’s increase in investment allocations to accelerate the implementation of several national projects and to improve infrastructure.

The minister also highlighted that financial performance indicators from July to March of the current fiscal year 2020/2021 saw unprecedented improvement resulting from economic and financial policies and reforms pursued by the government.

Egypt was able to see a LE 25 billion initial surplus during that first 9 months of the fiscal year, providing the required funding to support the most affected sectors and groups.

Just last month, the minister stated that the state’s general budget was able to achieve a surplus of around LE 14 billion, representing 2 percent of the GDP, contributing to the decline of the total budget deficit to 3.6 percent during H1 of FY 2020/2021, compared to 4.1 percent in the previous fiscal year.

Tax revenues saw an increase of 13.5 percent compared to the same period of the last fiscal year, which the minister notes as a reflection of the great efforts in strengthening the governance of the tax administration system though developing and automating tax procedures.

Tax revenues increased by 13.5 percent with tax revenues from non-sovereign entities rising by LE 43.1 billion or 10.4 percent YoY and tax revenues from sovereign entities growing by LE 20.6 billion or 33 percent on an annual basis.

The minister pointed out that during the period from July to March of the current fiscal year 2021/2021, 133.5 billion pounds were transferred from the state's public treasury to the Insurance and Pensions Fund.

Maait noted that the Ministry of Finance provided LE 31 billion for investment plans for a number of government agencies for the current fiscal year 2020/2021. To ensure the implementation of several national projects which the ministry took responsibility for, the ministry spent around LE 194.7 billion, with an annual growth rate of 72.3 percent.