Egypt's parliament starts to discuss state's 2021/22 new budget, development plan Sunday

Gamal Essam El-Din , Sunday 13 Jun 2021

MPs are also scheduled Tuesday to ask Minister of Petroleum questions on policies in the oil sector

Parliament

Egypt's parliament – the House of Representatives – will start Sunday to discuss the 2021/22 new state budget and a socio-development plan.

The House will debate a comprehensive report prepared by the parliament's Budget Committee on the new state budget and the socio-development plan on Sunday and Monday.

The report also covers the budgets of public economic organizations and the National Organization for Military Production.

In the report, MPs recommend the budgets of the two sectors of health and education be increased, saying that the priorities in the new budget should be re-ordered to give some sectors precedence over others, head of the House's Budget Committee Fakhri El-Fiqi said.

The MPs call for increasing the budget allocated to state-funded medical treatment for poor and limited-income citizens from EGP7 billion to EGP8 billion.

They also recommend the budget of the higher education be increased from EGP 74.7 billion to EGP 77.2 billion, and that of the Ministry of Education from EGP 108 billion to EGP 112.5 billion.

In a statement before parliament on 25 April, Minister of Finance Mohamed Maait said while the new 2021/22 budget targets revenues of EGP 1.365 trillion, spending is projected to reach EGP 1.837 trillion.

He indicated that the new budget will allocate EGP 321.3 billion in subsidies, grants and social privileges.

Maait said the new 2021/22 budget aims to slash public debt to 89.5 per cent of GDP and cut budget deficit to 6.7 percent of GDP.

"This is part of our policies focused on maintaining financial stability, achieving fiscal discipline and containing the negative impact of the COVID-19 pandemic on the economy," said Maait.

Minister of Planning and Economic Development Hala El-Said also indicated that the government targets EGP 1.25 trillion in overall investments.

"We target economic growth of 5.4 percent in FY 2021/22, up from a projected 2.8 per cent at the end of 2020/21," said El-Said.

The House will also discuss a $400 million loan agreement between Egypt and the International Bank of Reconstruction and Development on supporting Egypt's new social health insurance system.

On Tuesday, Minister of Petroleum Tarek El-Mola will face 35 questions from MPs on high costs of supplying households with natural gas, problems in Petrojet Company, oil prospection in the Red Sea governorate, and oil exports. 

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