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Tuesday, 04 August 2020

Egypt’s FY2019/2020 budget records EGP 2.7 bln in savings used to boost investments: Minister

Doaa A.Moneim , Monday 15 Jun 2020
Hala El Said.
Minister of Planning and Economic Development Hala El Said.
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Views: 1512

Egypt’s Minister of Planning and Economic Development Hala El-Said has announced that the total savings of the FY2019/2020 budget recorded EGP 2.7 billion, which were used in boosting investments and meeting the urgent needs of a number of state bodies.

For bodies that have been boosted in investments from such savings, 

El-Said said that the bodies that have been boosted by these extra funds include the education ministry with EGP 200 million, university hospitals with EGP 200 million, the health ministry with EGP 250 million, and Al-Azhar with EGP 50 million.

The transport ministry was also supported with EGP 200 million, Cairo governorate with EGP 220 million, and the higher education ministry with EGP 700 million, according to El-Said.

She pointed out that a decree has been issued to open an additional line of credit of EGP 10 million within the FY2019/2020 budget for buying non-fiscal assets and investments in order to lure economic activity amid the COVID-19 crisis.

El-Said added that the line of credit also targets increasing operation rates directly through paying companies and contractors’ dues, increasing cash liquidity which helps in paying workers’ salaries.

Under this additional line of credit, EGP 4 billion were allocated for the higher education ministry, EGP 1 billion for the youth and sports ministry, EGP 1.8 billion for Cairo governorate, and EGP 2.5 billion for the housing ministry.

The second half of the FY2019/2020 budget saw heavy pressure due to the COVID-19 crisis, which required the rearrangement of spending, investment, and allocation priorities. However, the FY2019/2020 budget did experience solid macroeconomic signs despite the crisis.

Egypt has seen real economic growth that hit 5 percent during the third quarter of the fiscal year, while the targeted real economic growth before the COVID-19 crisis was projected to reach 5.9 percent, according to the planning ministry.

As of July, Egypt’s new FY2020/2021 budget will be in force.

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