Egypt is targeting a 5.4 percent real GDP growth in FY2021/2022 and eying decreasing the budget deficit to GDP ratio to 6.7 percent, Minister of Finance Mohamed Maait announced.

Maait made his statement while delivering the government’s fiscal statement for the FY2021/2022 draft budget before the general assembly meeting held on Sunday.

Maait also said that the FY2021/22 budget is targeting a 1.5 percent budget initial surplus.

FY2021/22 budget revenues are estimated at EGP 1.3 trillion, while expenses are expected to post EGP 1.8 trillion, according to Maait.

He also added that the FY2021/22 budget is witnessing an unprecedented increase in public investment allocations, reaching EGP 358.1 billion, with a growth rate of 27.6 percent compared to the allocations of the FY2020/21 budget.

Maait noted that EGP 10 billion were allocated for gas prices subsidies and for financing the decrease in electricity prices for the manufacturing sector.

He added that the FY2021/22 budget has EGP 2.1 billion allocated for the conversion of old vehicles to run using natural gas.

The FY2021/22 draft budget includes the allocation of EGP 87.2 billion for supply commodities subsidies, EGP 19 billion for social security pensions and for the ‘Takafol and Karama’ programme, according to Maait.

It also includes an allocation worth EGP 7 billion for treatment at the state’s expense, targeting the expansion of the inclusive health insurance system to cover Luxor, Aswan, Ismailiya, Suez, and South Sinai, according to the minister.

The minister also expounded that the FY2021/22 draft budget includes an increase in wages and compensations for state employees by 11.4 percent to reach EGP 361 billion.

Maait said that the FY2021/22 draft budget is in line with presidential directives to maximise public expense objects, support national mega projects, and back productive activities and segments most hit by the pandemic.

During the meeting, the government submitted 57 draft laws, including a draft law for budgeting, 55 draft laws for economic authorities, and a draft law for the National Authority for Military Production.