Egyptian Minister of Finance Mohamed Maait unveiled that Egypt’s fiscal performance indices over the past eight months of FY2019/2020 were good, attaining a primary surplus of EGP 38 billion, accounting for 0.5 percent of GDP, up from EGP 28.5 billion, 0.5 percent of GDP compared to the previous fiscal year.

Maait said in a statement that the overall deficit recorded 4.9 percent, clarifying that financial burdens and obligations were paid early from October to December 2019 instead of the scheduled April to May 2020, which reflects the stability of Egypt’s fiscal situation.

He said that there are presidential instructions for FY2020/2021 to focus on the middle class, priority care groups, education, healthcare, manufacturing and export boosting initiatives.

Furthermore, according to the minister, the draft budget for FY2020/2021 is about to be finalised next week, and will be submitted to the cabinet and then to parliament before the end of March.

He added that the new tax system, which will be included in the FY2020/2021 budget in light of the recent presidential economic policies, includes a new category for payroll taxes, as a 25 percent tax will be imposed on those whose annual income exceeds EGP 400,000.

Meanwhile, Vice Minister for Financial Policies and Corporate Advancement Ahmed Kojok explained that the FY2020/2021 draft budget targets a primary surplus of 2 percent of GDP, lowering the budget deficit to 6.2 percent and bringing the public dept to GDP ratio to 80 percent.

He added that it will also involve a package of procedures and initiatives aimed at enhancing social protection, human development, and backing economic activity.