Egyptian Minister of Finance Mohamed Maeet confirmed that President Abdel Fattah El Sisi directed to increase public spending on the path of improving the conditions of citizens, and sustainable work to meet their basic needs and raise their standard of living. This is also along with committing to the path of improving the wages of state workers and pensioners, in the new draft budget for the fiscal year 2024-2025, to ease the burdens on citizens in a way that contributes to reducing the inflationary effects as much as possible, along with achieving economic targets and giving priority to the health and education sectors.
The minister referred to expanding the extension of the social protection umbrella, taking into account the fair distribution of budget allocations in order to meet the growth and development requirements of all regions and segments of society.
In this context, the state is keen to complete the implementation of the Decent Life initiative, the largest project in Egypt’s history to improve the lives of 60 per cent of Egyptians who live in the countryside, to lay the foundations for a decent life, and to fulfill the aspirations of citizens in the New Republic.
“We are continuing to implement a package of strong structural reforms to support promising sectors within the framework of the state’s efforts to achieve optimal exploitation of its resources and stimulate the international competitiveness of the Egyptian economy. This is by striving seriously to improve the business environment by simplifying procedures and laying the foundations for a tax system that is more stimulating for investment and more suitable for Medium, small and micro-projects,” the minister said.
The minister added that during the next fiscal year, the government is targeting good economic growth driven by a greater role for the private sector in economic activity as the engine of development and economic recovery, in light of the advanced infrastructure and incentive programs and facilities adopted by the state to expand the scope of private investments and deepen them in various aspects of life. The minister also pointed to the Proposals Programme that enhances capabilities to meet financing and external needs during the next two years, and contributes to attracting more investors.
The minister explained that, during the new fiscal year, the government will continue to maximise efforts to maintain macroeconomic stability and achieve positive financial indicators by deepening financial discipline policies.
“We aim to record a primary surplus of no less than 2.5 per cent of domestic product annually in the medium term,” he said.
The minister pointed out to the new procedures and reform measures for government debt management, which include setting a binding ceiling for annual burdens to ensure a downward path for the debt-to-GDP ratio, reaching less than 85 per cent by the end of June 2028.
Maeet added that the government is continuing to maximise efforts to expand the tax base by integrating informal activities, through the optimal use of smart tax solutions and automated systems to inventory the tax community more accurately, and achieve tax justice with full commitment to maintaining the stability of tax policies.
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