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Egypt unveils massive budget boost for upcoming year

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Egyptian Finance Minister Mohamed Maait announced the details of the approval by the Cabinet of Ministers of the budget for the new 2023/2024 financial year.

The Minister stressed that the approval of the budget comes in light of the exceptional circumstances observed in the global economy, and puts extremely heavy pressure on the budgets of countries, including Egypt, whether in terms of unprecedented increases in the prices of goods and services. , as a result of disruption to supply and supply chains, or high financing costs.

“Financial allocations for public investment are showing unprecedented growth, especially through self-financing, reaching LE 306 billion out of a total public investment of LE 586.5 billion, compared to LE 376 billion, with an annual growth rate of 55.9 % to create new jobs and improve the services provided to citizens,” the Egyptian minister said.

The Egyptian minister added that the state’s total budget, “public administration, local administration and public services” is estimated to be around £3 trillion for the next financial year, with an annual growth rate of 44.4%, while the total revenues of £2.1 trillion, with an annual growth rate of 41.2% Tax revenue is expected to increase by 31% as a result of the expansion of the tax base and the registration of new financiers, by continuing mechanization projects in a way that reflects efforts to maximize resources state, enabling it to fulfill development priorities, expand its social safety net and cope with the consequences of international economic problems. the maximum possible impact of the global inflationary wave on citizens; Especially the most needy and most caring groups, as well as those completing the process of building a new republic; Which is based on the continuation of the President’s initiative “Life with dignity”, the largest project in the history of Egypt, the completion of the first stage, the beginning of the second stage of the development of the Egyptian village, the improvement of the lives of 60% of the Egyptians who live there, increasing spending on health and education and expanding effective programs .These are two vital sectors for continued human development.

The Minister indicated that allocations for university and pre-university education and research were increased in the budget for the next financial year by 48.6% billion to 305.2 billion pounds with a growth rate of 19%, while allocations for the health sector increased by 13 .3 billion pounds, reaching 111.2 billion pounds, with a growth rate of 14%.

The Minister continued that allocations for undergraduate and pre-university education and research have been increased in the budget for the next financial year by £48.6bn to £305.2bn at a growth rate of 19%, while allocations for the health sector have also increased by 13%. .3bn, reaching £111.2bn, up 14%, indicating that financial allocations for those responsible for providing education and health services have been increased as part of a recent wage hike decision. package as the performance award for teachers in education and Al-Azhar al-Sharif has been increased by £300 per month and the quality award for teachers and their assistants at universities and research centers has been increased by £300 per month. month, and an increase in the risk premium for medical professions with financial categories from £400 to £475 for physicians and nurses, with a doubling of the categories for night shifts, overnight stays and emergency incentives; Ensure the provision of educational and medical services at a decent level.

The minister said: “We are committed to meeting the needs of citizens and reducing the inflationary impact on them, as well as achieving economic and financial goals, as the primary surplus is expected to reach 2.5% of GDP, which is the highest primary surplus. targeted as part of an effort to reduce public debt to GDP ratio and a record deficit of around 6.9% by maximizing efforts on fiscal discipline, the competitiveness of the Egyptian economy, improving the business environment and simplifying procedures to encourage investment, and achieving growth in 4.1% of GDP through increased productivity and support for structural reforms to ensure that the private sector leads the engine of development and provides more productive employment opportunities.

He noted that LE 28.1 billion has been allocated to export support and promotion with an annual growth rate of 368.3%, which facilitates the rapid payment of contributions to exporters within 3 months after the completion of the submission of documents in a way that helps to ensure cash liquidity, which stimulates manufacturing activities and facilitates the penetration of Egyptian products into world markets. LE 19.5 billion has been allocated to support industrial and agricultural production activities.

The Minister said that, according to the calculations of the new draft budget, allocations for subsidies, grants and social benefits rose to 529.7 billion pounds, or 48.8 percent, including 127.7 billion pounds for food support at an annual rate growth of 41.9 percent. £119.4bn to subsidize petroleum materials and £6bn for health insurance and medicines with a 58.2% increase over the current fiscal year, £10.2bn to support ‘low income and social housing’ housing with an annual growth rate of 31.5%, £31bn in Social Security pensions with an annual growth rate of 25%, and £202bn in pension fund contributions with an annual growth rate of 6% to ensure the necessary financial liquidity for servicing pensioners, beneficiaries and insured persons and the fulfillment of all obligations to them, and more than £8 billion for the treatment of citizens at the expense of the state, with an annual growth rate of 14.3%, which indicates that the budget for the next financial year also includes an allocation of 470 billion Egyptian pounds for wages with an annual growth rate of 17.5% compared to the current financial year to improve the working conditions of workers in the country.

Source: RT

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