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Sunday, 08 December 2019

Egypt's finance ministry releases FY 2020/21 budget's preliminary statement

FY 2020/21 will witness several reforms to create an attractive investment environment, with a focus on small and medium projects and manufacturing

Doaa A.Moneim , Monday 11 Nov 2019
 Mohamed Maait
File Photo: Egypt’s Finance Minister Mohamed Maait (Photo: Al-Ahram)
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Egypt's Minister of Finance Mohamed Maait has announced that the government is targeting positive results for the coming fiscal year regarding financial indices, with a growth rate of 6.4 percent and a decreased overall budget deficit to 6.2 percent.

In a statement released on Monday, Maait said that the budget's preliminary statement for the fiscal year 2020/21 also aims to decrease the local debt-to-GDP ratio to 80 percent through financial consolidation procedures that the ministry is adopting to increase Egypt's economic competitiveness.

The minister clarified that the FY 2020/21 budget focuses on applying large scale, profound structural reforms to push the private sector to be the engine of economic development, adding that a new package for supporting exports will be launched to pave the way for maintaining a more competitive export base.

"FY 2020/21 will witness several reforms to create an attractive investment environment, with a focus on small and medium projects and manufacturing," Maait added.

The new budget will include expansion in new cities and urban communities to house 10 million people, in addition to using clean technology, especially in waste recycling projects.

Maait added that the ministry is making serious efforts to ensure financial sustainability, achieve cash stability, control price hikes, improve the payment balance and hard currency to pave the way for a stable environment able to withstand internal and external shocks caused by swings in the economy.

The ministry said it is also focusing on human development and increasing investment, especially in healthcare, education, and social housing.

The customs system will witness several reforms in FY 2020/21, including providing more facilities and decreasing the customs clearance duration and fees for a better ranking in the World Bank's Trading Across Borders Index.

Maait added that the new customs draft law, the applying of Single Administrative Document (SAD) and the single window system will improve Egypt's customs system and put it on par with developed countries.

"Egypt's economic reform programme is in line with the country's sustainable development vision 2030, which focuses on creating sufficient, suitable, and productive job opportunities that help decrease unemployment, increase domestic production, integrate the Egyptian economy globally, and achieve stable tax policy," according to Maait.

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