Minister of Finance Mohamed Maait announced that the disbursements of the draft budget for fiscal year (FY) 2020/2021 have reached approximately EGP 1.71 trillion, and revenues recorded EGP 1.3 trillion.
Announcing FY 2020/2021 figures, Maait added the new budget targets improving state employees' incomes by allocating EGP 335 billion for wages, with an increase of EGP 34 billion, or 11.3 percent higher than the allocations of FY 2019/2020 budget to meet increments disbursement.
The budget also covers the new increases in medical professionals' allowance of 75 percent as per the orders of President Abdel-Fattah El-Sisi.
According to the FY 2020/2021 draft budget, EGP 2.25 billion were allocated to meet this new increase, while EGP 100.2 billion were allocated for commodities and services.
It also allocated EGP 326.3 billion for subsidies, including EGP 19 billion for Takafol and Karama programmes and social solidarity pensions, in addition to EGP 170 billion for General Pension and Social Solidarity Authority to pay the second instalment of the public treasury liabilities for the authority.
These liabilities include the five increments disbursement for pensioners and their special bonuses of 14 percent.
The FY 2020/2021 draft budget includes raising social housing allocations to EGP 5.7 billion with a growth increase of 70 percent to expand the base of social housing units' beneficiaries.
It also includes raising export support subsidies to EGP 7 billion.
The budget allocated EGP 4 billion to meet the raising of tax exemption ceiling and the decrease of income return tax brackets,
Maait said FY 2020/2021 meets the constitutional dues percentages for the healthcare, scientific research, and education sectors with EGP 95.7 billion for healthcare, increased by EGP 23.5 billion allocated in FY2019/2020, and EGP 46.7 billion for education, EGP 7.8 billion for scientific research.
He added that FY 2020/2021 targets declining total GDP deficit to 6.3 percent and attaining an initial surplus increase of two percent.
It targets, as well, upping governmental investments to EGP 280.7 billion, an increase of 64.3 percent, to boost economic activities, pursue infrastructure improvement, and to pave the groundwork for a stimulus environment for investments.
“FY 2020/2021 reflects the state’s keenness to continue the economic and social reform trajectory, and its serious endeavours to reduce debt rates, GDP deficit, and enhance national economy structure through pushing productive activities, incentifying manufacturing and expanding exporting base,” according to Maait.
Maait clarified that the FY 2020/2021 budget has been laid out according to exchange rates from 1 January to 31 March 2020, and the oil barrel price standing at $61.