Egypt eyes decreasing overall deficit to 6.6%, Maait

Egypt seeks to decrease the overall deficit to GDP ratio to 6.6 percent as well as reaching a 1.5 percent initial surplus for  FY2021/2022 budget plan, Minister of Finance Mohamed Maait said.

Maait made his statements during reviewing the coming FY2021/2022 budget plan, which was approved by the cabinet.

Maait also said that in light of the expected gradual economic recovery from the pandemic and the reforms Egypt has executed so far, the budget’s revenues are expected to increase by 16.4 percent to post  1.3 trillion pounds  during FY2021/22, up from  1.1 trillion pounds in the current FY2020/21, which ends in June.

Such an increase will be reached through expanding the tax base and the e-payment and collecting system as well as linking the revenues with economic activity, according to Maait.

For public investments, Maait unveiled that they will witness an unprecedented increase in the FY2021/22 budget, with a growth rate of 27.6 percent.

Moreover, exports support and development is expected to grow to 110 percent, wages and compensations to 11.4 percent, while raw materials allocations will increase by 26 percent, according to Maait.

The FY2021/22 budget will continue to bear the financial burdens caused by the decrease in electricity and natural gas prices with a total cost worth 9 billion pounds, up to 10 billion pound, according to the actual consumption, said Maait.

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