Finance, planning ministers to address parliament on 2023/24 budget draft, plan Tuesday

Gamal Essam El-Din , Monday 8 May 2023

Egypt’s Finance Minister Mohamed Maait and Planning and Economic Development Minister Hala El-Said will deliver Tuesday two statements in parliament on the draft FY 2023/24 budget and socioeconomic development plan.

Egypt parliament. AFP
Egypt parliament. AFP

 

The discussion of the budget and plan comes amid a global economic crisis triggered by the Russia-Ukraine war, which has been exerting tremendous pressure on the public finances of most world countries, including Egypt.

There has been an unprecedented spike in the prices of basic food commodities and increases in the cost of imports due to disruptions in world supply chains.

The new budget expects a 42 percent increase in revenues to reach EGP 2.1 trillion ($67,962,384,000), while spending is forecasted to be 44.4 higher than the current budget to reach EGP 3 trillion ($97,089,120,000).

Finance Minister Mohamed Maait told the cabinet in late March that the budget has adopted several measures to mitigate the impact of soaring inflation on the country's vulnerable classes. "President Abdel-Fattah El-Sisi has asked the government to increase spending on social protection programmes, grants and subsidies by 48.8 percent in the new budget, up from 17.1 percent in the current one," said Maait.

The new budget will raise social spending to EGP 530 billion ($17,147,774,760), including EGP 128 billion ($4,142,126,720) on ration cards and EGP 119 billion ($3,851,221,990) on fuel subsidies.

Maait also said the FY 2023/24 budget targets economic growth of 4.1 percent, and a budget deficit cut to 6.9 percent of the GDP. "The value of public investments will be increased by 55.9 percent to reach EGP 586.7 billion ($18,989,328,744) in the new budget and will be used to set up projects that can generate job opportunities and improve public services," said Maait.

Meanwhile, Planning Minister Hala El-Said told the cabinet in late March that "The new 2023/24 socio-economic development plan has three objectives: completing investments projects whose implementation rate has exceeded 70 percent; setting up projects that are part of the Decent Life initiative in rural Egypt particularly in the health and education sectors and exiting projects that will be funded by the private sector in line with the State Ownership Policy Document."

The budget and socio-economic development plan should be debated and voted on by parliament before the start of the new FY on the first of July.

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