Egypt’s President Abdel Fattah El Sisi directed the government to continue maintaining financial discipline, ensuring the financial sustainability of the general state budget, and continuing to take all necessary measures to reduce the public debt and its service burdens.
The president gave these directives during his meeting on Tuesday with Prime Minister Moustafa Madbouli, Minister of Finance Mohamed Maeet and Deputy Minister of Finance for Financial Policies Ahmed Kajok.
The meeting reviewed the draft budget for the next fiscal year 2024/2025, where the Minister of Finance presented the key final indicators of the budget. These indicators target achieving a growth rate of 4% of the gross domestic product (GDP).
The budget is expected to achieve a primary surplus of 3.5% and reduce the total deficit in the medium term to 6% of GDP. Additionally, revenue growth in the general state budget is expected to increase by 36 per cent to reach LE2.6 trillion, while general expenditure is expected to grow by 29% to reach LE3.9 trillion.
A total of LE575 billion will be allocated for salaries, and LE636 billion for subsidy, grants, and social benefits, including 144 billion for subsidised goods and 154 billion for petroleum product subsidy due to the global rise in oil prices and the impact of exchange rate liberalisation.
This poses a major challenge to the state’s public finances. In addition, more than LE40 billion will be allocated for “Takaful and Karama” in addition to increasing allocations for health and education by 30 per cent as they are considered “presidential priorities” to complete the strategy of human resources’ development during the upcoming budgets starting from the fiscal year 2024/2025.
The minister said that for the first time this year, the concept of the general government budget will be introduced to contribute to stating the real capabilities of the state’s public finances according to an objective reading that reflects the full revenues and expenditures of the state and its public bodies.
He explained that the “general government” budget will be presented in the fiscal year 2024/2025 and will include the general state budget and the budgets of 40 economic entities as a first stage, with total revenues of the general government budget reaching LE4 trillion, while its total expenditures will reach LE4.9 trillion.
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