Minister of Finance Mohamed Maait speaks during an open dialogue on the new FY2024/2025 budget on Tuesday 12 March, 2024.
Minister Maait’s statement came in an open dialogue on the new FY2024/2025 budget project, which rolls on by 1 July, with representatives of the Federation of Egyptian Industries, the Egyptian Business Association, the Egyptian African Businessmen’s Association, and the Federation of Egyptian Chambers of Commerce.
General revenues amount to around EGP 2.5 trillion and primarily rely on non-tax revenues, while general expenditures amount to approximately EGP 3.8 trillion, with a growth rate of 23 percent, Maait added.
“There is ample room for flexible spending to address internal and external shocks and alleviate the burdens on citizens, in line with the bold government measures taken in recent times,” he clarified.
The minister also said there will be no increase in tax burdens on investors during FY2024/2025, emphasizing the government’s keenness on stabilizing tax policy to achieve economic stability in Egypt.
The amendments made to the comprehensive health insurance law aim to deduct the solidarity contribution from the tax base, he explained.
Meanwhile, the new budget targets injecting more investments into healthcare and education sectors, while rationalizing spending in other sectors, according to Maait.
He also noted that social protection programs that support citizens will be expanded without contributing to inflationary pressures.
Moreover, public investments for all state entities, without exception, will not exceed EGP 1 trillion during FY2024/2025, to give greater space for the private sector in the economic development process, Maait added.
In FY2024/2025, the government will establish a ceiling for the budget debt of authorities and economic bodies, which cannot be exceeded except through the approval of the president, the cabinet, and the House of Representatives.
Maait further explained that the initial surplus and 50 percent of the IPO sales’ proceeds will be directed to reducing the debt. This will initiate a path for reducing the government’s debt and service burdens that goes with its target of lowering the debt-to-GDP ratio on a downward trajectory to less than 80 percent over the next three years.
“The government is betting on the private sector to regain economic growth,” Deputy Finance Minister Ahmed Kojak said during the meeting.
According to Kojak, the government has decided to set a ceiling for public investments to allow the private sector to advance more quickly.
He added that the government looks forward to enhancing industry and local production through incentivizing initiatives that are tied to actual results before receiving support.
The government, with the general state budget, will also issue a set of important documents to enhance transparency, including the financial risk report and the tax expenditure report.
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