Egypt targets 4% GDP growth in FY24/25 budget

Egypt’s Finance Minister, Mohamed Maait, unveiled the final key indicators of Egypt’s draft budget for the fiscal year 24/25, aiming for a GDP growth rate of 4 per cent, the Spokesman for the Egyptian Presidency reported on late Tuesday.

The budget anticipates an initial surplus of 3.5 per cent and a medium-term total deficit reduction to 6 per cent of the GDP.

The state’s general budget is expected to see revenue growth of nearly 36 per cent, reaching EGP 2.6 trillion, and public expenditure growth of 29 per cent, amounting to EG P3.9 trillion, according to Maait.

Allocations include EGP 575 billion for wages, 636 billion for subsidies, grants, and social benefits, with 144 billion set aside for basic food supplies and 154 billion for petroleum product subsidies.

The budget also earmarks over EGP 40 billion for Takaful and Karama programme and increases health and education allocations by 30 per cent, in line with the presidential priority of building Egyptian citizens.

Maait highlighted that the 24/25 fiscal year will introduce the concept of the general government budget for the first time.

This includes the state’s general budget and the budgets of 40 economic bodies, bringing the total revenues of the general government budget to EGP 4 trillion and total expenditures to EGP 4.9 trillion.