Written by Hind Mukhtar
Wednesday, March 27, 2024 02:45 PM
The Council of Ministers agreed, at its meeting today; Headed by Dr. Mostafa Madbouly, on the draft budget for the fiscal year 2024/2025, as well as the budgets of public economic bodies, in preparation for sending them to the House of Representatives on the constitutional deadline at the end of this month.
During the meeting, Dr. Mohamed Maait, Minister of Finance, indicated that next Sunday, for the first time, the draft general government budget will be presented to the House of Representatives, which includes “the general budget of the state’s administrative apparatus and all economic bodies,” bringing the total general government expenditures to 6.4. One trillion pounds, and its revenues are 5.05 trillion pounds, which reflects the structural reforms that were made with the recent amendment to the Unified Public Finance Law, according to which the concept of the “general government budget” was introduced. Which includes the state’s general budget and the budgets of economic bodies, in a way that contributes to demonstrating the true capabilities of the state’s public finances according to a more comprehensive, objective reading that includes the entire revenues and expenditures of the state and its public bodies.
The minister added that, in the new state budget, we aim to achieve a large primary surplus of more than 3.5% of the gross domestic product, reduce the total deficit in the medium term to 6%, and put the debt-to-domestic product ratio on a downward path to reach 80% in June 2027. Through a new strategy that includes setting a legal ceiling for the “general government” debt that cannot be exceeded except with the approval of the President of the Republic and the Council of Ministers, in addition to directing half of the revenues from the “offerings” program to directly reduce the size of government debt while also working to prolong the life of the debt.
Dr. Mohamed Maait pointed out that a ceiling has been set for the total public investments of the state, in all its bodies and entities, not to exceed one trillion pounds in the next fiscal year 2024/2025, in order to make room for the private sector in a manner consistent with the state’s efforts aimed at increasing the contributions of this important sector to economic development activity. .
The minister explained that the growth rate of revenues of the state’s general budget (the administrative apparatus) during the fiscal year 2024/2025 is 36%, reaching 2.6 trillion pounds, while the growth rate of expenditures is 29%, reaching 3.9 trillion pounds, pointing out that the President Abdel Fattah El-Sisi, President of the Republic, directed to increase the allocations for the health and education sectors by more than 30%, as they are among the state’s most important priorities to complete the strategy of building the Egyptian human being during the upcoming budgets, starting from the fiscal year 2024/2025. The President also directed to increase the allocations for support, grants, and social benefits to 636. One billion pounds, including 144 billion pounds to support food commodities, and 154 billion pounds for petroleum products as a result of the rise in global oil prices and the impact of exchange rate changes, in addition to 215 billion pounds for pensions, 23 billion pounds to support exports, and 40 billion pounds for “Solidarity and Dignity.”
Dr. Mohamed Maait indicated that we aim to grow non-tax revenues by 60%, and tax revenues by 30%, without adding any tax burdens on citizens or investors, by expanding the tax base by maximizing efforts to optimally exploit electronic tax systems in integrating the informal economy into… Formal economy.
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